Nigeria’s Department of Petroleum Resource (DPR) has said that consumption of fuel fell substantially as a result of the nationwide lockdown, occasioned by the COVID-19 pandemic.
According to data released on Monday, the consumption of premium Motor Spirit’s (PMS) in Nigeria, across the country dropped by 20.6% to 1.43 billion litres in May 2020, from 1.8 billion litres recorded in March 2020.
The first lockdown was declared by the Federal Government and some state governments, March ending, while the lockdown was partially lifted, mid-May.
Speaking at the Future Energy Leaders Nigeria, live webinar, organised by the World Energy Council, Engr. Sarki Auwalu, Director/Chief Executive Officer of the DPR, disclosed that supply of the commodity had dropped by 25% to 1.350 billion litres in April, before rising by 5.93% to 1.43 billion litres in May.
This translated to average daily petrol supply of 58.06 million litres in March; 45 million litres per day in April and 46.13 million litres per day in May 2020. In addition, he also disclosed that diesel supply which stood at 600 million litres at the end of March, dropped by 33.33% to 400 million litres for April, and remained at the same level in May.
On the other hand, Auwalu disclosed that Nigeria’s crude oil and condensate production stood at 68 million barrels in March; 66 million barrels in April and 58 million barrels in May, while the country exported 61 million barrels of crude oil and condensate in March 2020; 62 million barrels in April and 56 million barrels in May.
The DPR noted that the pandemic had brought to the fore the need for efforts to be geared towards bringing down the cost of producing a barrel of crude oil; ensure business efficiency and financial stewardship, as well as the adoption of good corporate governance.
furthermore, Auwalu disclosed that the decision of the Federal Government to conduct a marginal field bid rounds during this period of the COVID-19 pandemic, was borne out of the need to produce crude oil at a lower cost.
According to Sarki, the cost of producing crude oil from marginal fields was very low, owing to the fact that there is no exploration cost. He said, “The Federal Government chose to go ahead with the conduct of the marginal fields bid round now because of its realization of the need to cut cost in crude oil production at this crucial period in the economic life of the country.”
Chibisi Ohakah, Abuja
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