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Fuels: President of Hydrocarbons Regulatory Authority voices on national consumption, production of diesel, service stations

September 28, 2022

ALGIERS – The national consumption of fuels reached, in 2021, a total quantity of 15.6 million tons, indicated, on Tuesday, the President of the Hydrocarbons Regulatory Authority (HRA), Rachid Nadil, affirming that the country was in self-sufficiency in the production of petroleum products.

Speaking on the program “L’heure du mardi” on the Algerian radio channel 3, Mr. Nadil said that national fuel consumption “experienced an increase in 2021 reaching 15.6 million tonnes, of which 9 .7 million tons of diesel, 3.6 million tons of gasoline and 1.3 million tons of GPLC (liquefied petroleum gas fuel)”.

This consumption also includes more than one (1) million tonnes of LPG, added the president of the (HRA), assuring that the country had not imported fuel since the year 2020.

In previous reports, the ARH had announced a fuel consumption of 12.59 million tonnes in 2020 and 14.4 million tonnes in 2019.

“If economic activity resumes normally in the coming months, we may need a small supplement of diesel imports of 300,000 to 400,000 tonnes. This quantity remains very insignificant compared to annual consumption”, explained the same official.

The president of the (HRA) also indicated that the Sonatrach group is developing processes to increase the production of diesel in Algeria, which should be completed in six to eight months. “These technical processes will further reduce the use of imports,” he noted.

Also, the entry into production of the Hassi Messaoud refinery will make it possible to have a surplus of diesel production, further explained the president of the ARH.

Welcoming the efforts made by Sonatrach and Naftal, in particular in the generalization of unleaded petrol, which had replaced all other qualities of petrol since July 2021, he described this operation as “successful” and which had made it possible to save large amounts of foreign currency.

Referring to the national consumption of GPLC, Mr. Nadil reported a number of 850,000 vehicles converted to GPLC, including more than 50,000 during the first half of 2022, while national consumption of GPLC is 1.3 million tonnes in 2021.

With regard to the missions and attributions of the (HRA), Mr. Nadil mentioned a “text being drafted which should allow the Authority to have the prerogative to decide on the location of service stations on the basis of “a development plan and market study”, and this, to avoid, he explained, the concentration of these stations on certain wilayas.

2750 service stations activate nationwide

According to figures from the (HRA), there are, to date, 2,750 service stations nationwide, of which more than 1,400 are in the private sector and the rest belong to Naftal.

In the first half of 2022, the (HRA) granted authorizations for the opening of 28 new stations, indicated Mr. Nadil, adding that a number of 120 to 125 files of requests for authorizations for the opening of new service stations are under review.

The president of the (HRA) pleaded for the revision of the profit margin of fuel prices, which, according to him, only makes it possible to “cover the charges” of the service stations, considering that “the increase in prices of a few centimes will be sufficient”.

In addition, Mr. Nadil announced that the (HRA) will recruit more than a hundred engineers and technicians in order to extend its control services. The (HRA) also intends to have a large central headquarters and three regional offices in Hassi Messaoud (Ouargla), Skikda and Arzew which will be set up at the beginning of next year.