South West maintain lead on petroleum products distribution H1 2014

Petroleum products distributed by major and independent marketers across the six geo-political zones in the first half of 2014 (H1 2014) increased by 90 percent, data from the Nigerian National Petroleum Corporation (NNPC) monthly petroleum information (MPI) shows with South West maintaining its lead.

The report shows that a total of 3,194.09 million litres of different petroleum products was distributed in the six geo-political zones including Abuja by major and independent marketers. This indicates an increase of 90 percent when compared with 1,682.08 million litres distributed in the corresponding period of 2013.

The products distributed comprise premium motor spirit (PMS), dual purpose kerosene (DPK), automotive gas oil (AGO), and others like low pour fuel oil, bitumen and asphalts, etc.

Findings from the report show that more than half of the products distributed in the country went to the Southern region consisting of South West, South East and South-South.

On the other hand, 32 percent of the products distributed during the period under review went to the Northern region which comprises North West, North East and North Central including Abuja.

Though 54 percent of Nigeria’s population lives in the Northern region, the region used 1,027.16 million litres of different refined petroleum products in the first half of 2014. On the contrary, the 32 percent of Nigeria’s population living in the Southern region used 2,166.93 million litres in the same period. This indicates that the products distributed in the Southern region are two times higher than products distributed in Northern region.

Industry experts say low level of income within the Northern region was responsible for the region accounting for the lowest use of refined petroleum products despite the high population in the region (by 2006 census figures).

Available data from the National Bureau of Statistics (NBS) on poverty and income distribution across the states shows that North-West and North-East recorded the highest poverty rates with 77.7 percent and 76.3 percent, respectively, in 2010.

Looking at the six geo-political zones, South West zone emerged as the leading zone with the consumption of 208.94 million litres of different petroleum products in the H1 2014, though its share of the petroleum products distributed declined from 42 percent in 2013 to 38 percent in 2014. The larger portion of the South West zone products was absorbed by the South East and South West with increase in their respective share from 2 percent in 2013 to 4 percent in 2014.

South-South zone occupied the second place with the consumption of 839.77 million litres of refined petroleum products in 2014. Its share of the total products consumption reduced from 30 percent in 2013 to 26 percent in 2014.

North Central occupied the third place with the consumption of 800.49 million litres of different petroleum products during the period under review, while the North East accounted for 110.42 million litres, which is the least among the zones.

In the products template, a total of 2,424.16 million litres of PMS was consumed by the six-geo political zones during the period under review. This accounted for 76 percent of the total products consumed by the zones.

Out of the PMS distributed among the zones, a total of 1,143.10 million litres or 47 percent was consumed in the South West zone with a population of 28 million people. This is two times higher than the whole of PMS distributed in the Northern region including Abuja. The South East consumed 74.73 million litres of PMS, which is the least among the zones.

A breakdown of PMS consumption in the Northern region shows that North Central accounted for more than 50 percent of PMS consumed within the region. This is three times more than 89.99 million litres consumed in the North East.

DPK occupied the second place in the products template with the distribution of 344.65 million litres across the six geo-political zones of the country in the H1 2014.

The larger proportion of DPK, to the tune of 195.73 million, was consumed in the South-South zone which is equivalent to 57 percent of the total DPK distributed among the six zones in the period under review. This is two times higher than the DPK distributed in the whole of the Northern region.

From the northern angle, North Central zone consumed 58.23 million litres or 74 percent of the 79.20 million litres of DPK distributed within the region. And the DPK distributed in the North Central is three times less than the DPK distributed in the South-South.

AGO came third in the products template distribution with 259.71 million litres distributed across the six geo-political zones. South-South zone occupied the leading place in the distribution of AGO. It consumed 110.42 million litres. This is 0.73 million litres more than total AGO distributed in the Northern region.

In the Northern region, North Central zone consumed 88.92 million litres or 81 percent of the 109.69 million litres of AGO distributed within the region.

PETER OLOWA