Over the past year (2022), fuel consumption in Algeria has experienced a significant jump that exceeded the 3% mark. The fuel control authority attributes it to the country’s economic recovery.
The head of the Fuel Control Authority, Rachid Nadil, announced yesterday that domestic fuel consumption amounted to around 17.7 million tonnes over the past year. That is an increase of 3% compared to the consumption of the previous year. This is reported by the Algerian press agency.
Thus, Mr. Nadel attributes the increase in fuel consumption in Algeria to the economic recovery that the country is experiencing. And particularly in the service and industrial sectors; as well as in other sectors.
Consumption growth
In addition, Rachid Nadil says he expects the country’s fuel consumption to continue to grow in the coming years. And this, to reach approximately 41 million tonnes by 2050. That is an increase of 3 million tonnes per year. Also stressing that national production capacities are able to meet this demand.
Mr. Nadel further explains that in the past year 2022, the consumption of diesel fuel in the country amounted to about 10.1 million tons. With an estimated increase of more than 4% compared to the previous year. He confirmed that it is likely to increase, given the economic growth the country is experiencing.
Then, he continues: “The fuel oil production capacity is estimated at around 9 million tonnes per year. And it should reach 12.5 million tonnes per year by 2030. With the entry into production of the Skikda fuel oil conversion project in 2028. This helps to increase production by around 4 million tonnes.”
Regarding the consumption of liquefied petroleum gas, it increased by 20%. It reached about 1.5 million tons in the past year 2022; against 1.2 million tonnes in the previous year.
In addition, the head of the fuel control authority in Algeria underlines the drop in gasoline consumption, of around 2.26%. Indeed, it amounted to 3.3 million tons against about 3.4 million tons. This decline is due to the increase in the consumption of liquefied petroleum gas as fuel, which is expected to increase to 6.8 million tonnes by 2050.
Kerosene consumption (civil aviation) amounted to 468,000 tonnes in 2022, compared to 297,000 tonnes in 2021. An increase of 58%. While marine fuel consumption amounted to about 219 thousand tons; against a drop in “butane” and “propane” consumption of 2.26%.
Refineries and rationalization of consumption
In addition, the head of the hydrocarbon control authority in Algeria, welcomed the efforts of the five current refineries in the country. Which are now able to increase production by around 300,000 tonnes per year. In addition to Sonatrach ‘s 2025 plan to increase production to 500,000 tons per year.
In addition, Mr. Nadil believes that it is necessary to reduce fuel consumption in Algeria. And this, by encouraging citizens to adopt the mentality of rationalization. Explaining that a liter of frugal fuel can be exported to foreign markets to be converted into hard currency. This benefits the national economy and the citizen.
Rachid Nadil added: “The low prices of petroleum products in Algeria encourage their consumption. It is therefore necessary to reconsider the price margin, activating the method of direct aid directed to deserving social groups; including families with low and limited incomes.”
