Players in the downstream sector of the Nigerian economy, comprising the major and independent marketers, realised a gross income of N278.84 billion from the sale of the premium motor spirit (PMS), automobile gasoline oil (AGO or Diesel) and dual purpose kerosene (DPK) from January to December 2013. The breakdown shows that N116.6bn or 42 percent was realised on PMS, N85.4bn or 31 percent on AGO, and N76.8bn or 28 percent on DPK.
In terms of litres, the major marketers with 2,453 retail outlets dispensed 313.35 million litres of PMS, 130.94 million litres of AGO and 118.45 million litres of DPK. Consequently, the marketers namely: Forte Oil, Conoil, Total, Mobil, Oando and MRS made N64.7 billion representing 23 percent of the total gross earnings that were realised in 2013.
On the other hand, the independent marketers which have 24,226 retail outlets across the 36 states and FCT made N214.1 billion which amounted to 77 percent of the earnings made by downstream players. Further analysis shows that N86.2 billion on PMS, N67.6 billion on AGO while N60.2 billion was realised on DPK.
Ogun, Lagos, Oyo, Kaduna, Kano and Osun states account for 9,818 petrol stations in Nigeria. That amounts to 37 percent of the 26,679 petrol stations owned by major and independent marketers. Ogun State with 2,420 retail outlets emerged the best investment destination for this kind of business activities and it is followed by Lagos 2,153; Oyo 1,846; Kaduna 1,238; Kano 1,104 and Osun 1,057 retail outlets.
One geographical characteristic is common to these states which is the fact that each one of them shares borders with so many states. As a result, they have so many road networks which enhance the movements of goods and persons and this in turn allows transporters to access so many regions in the country. The states with the least number of petrol stations are Yobe, Ekiti, Zamfara, Ebonyi and Bayelsa. Yobe has 301 stations in 2013; Ekiti 238; Zamfara 234, Ebonyi 198 and Bayelsa 75.
If the consumption of PMS is a good proxy for how states contributed to Value Added Tax (VAT), then we would rank the Nigerian states thus: Lagos, Ogun, Oyo, Abia, Anambra, Kano, Akwa Ibom, Kaduna and Benue as the top ten most productive states in Nigeria in this regard. A total of 113.2 million litres of PMS was dispensed in Lagos state in 2013; Ogun, 102.8 million litres; Oyo, 68.7 million litres, Abia, 63.1 million litres; Anambra, 53.5 million litres and Kano, 53.1 million. Others are Akwa Ibom, 50.2 million litres; Kaduna, 47.1 million litres and Benue 41.1 million litres.
Another implication is that these states could have had the worst electricity supply in 2013. A past survey conducted by BusinessDay Research and Intelligence Unit (BRIU) supported the assertion that PMS use is lower when electricity supply is regular. The study found that for petrol stations located in residential areas, the sale of PMS is always high when power outages are frequent and vice versa. Relying on this study, one would conclude that one of the reasons why the sale of PMS was that high was because electricity supply conditions were worst in the aforementioned states in 2013.
Similarly, if the consumption of AGO is a good proxy for industrialisation in Nigeria, then there is no doubt in the claim that Ogun State is the Industrial base of the nation. Supporting this claim is the fact that in 2013, the state recorded the highest sale of AGO which amounted to 56.9 million litres. Lagos, Abia, and Kaduna followed in that order with the sale of 47.5 million litres, 29.6 million litres and 26.5 million litres of AGO respectively.
Other top ten most industrialised states are Anambra, 26 million litres; Kano, 25.4 million litres; Akwa Ibom, 25.3 million litres; Benue, 23.4 million litres; Imo,20.4 million litres and Osun, 20 million litres respectively.
This paragraph will surely interest the Federal Government and most especially the Federal Ministry of Women Affairs. A few days ago, the FG announced the award of a contract worth N9.2 billion for the provision of cooking stoves at the rate of one million stoves per annum for rural women under the National Clean Cooking Scheme.
The states where the least kerosene was used in 2013 were Sokoto, 7.5 million litres; Nassarawa, 7.4 million litres; Taraba, 7.2 million litres, Gombe,, 6.5 million litres; Jigawa, 6.1 million litres and Yobe, 5.7 million litres. Others are Zamfara, 4.3 million litres; Ekiti, 3.9 million litres; Ebonyi, 3.7 million litres and Bayelsa, 2.5 million litres.
Where the use of kerosene is very low, it means that sources of fuel such as firewood will the high in use. The motive of the FG is to address the indiscriminate felling of trees. Therefore, BRIU will suggest that the first port of call should be the rural women in the aforementioned states.
The earnings realised by the petrol stations varied across the states of the federation in 2013. This is measured by the average amount of each product dispensed in each state per every retail outlet. The petrol stations in Abuja, Abia, Anambra, Bayelsa and Bauchi were the most productive in terms of the sale if PMS. An average petrol station in Abuja dispensed 90,303 litres of PMS in 2013. It was followed by Abia, 76,974 litres, Anambra, 73,229 litres; Bayelsa, 72,840 litres; and Bauchi, 63,744 litres. The same goes for the sale of AGO and PMS.
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