PARIS OLYMPIC GAMES
The Nigerian National Petroleum Company Limited (NNPC Ltd) has restated that the total volume of Premium Motor Spirit (petrol) imported into the country from January to August 2022 was 16.46 billion litres, averaging daily supply of 68 million litres.
Similarly, import in the year 2021 was 22.35 billion litres, which translated to an average supply of 61 million litres per day.
Persecondnews recalls that the Nigeria Customs Service (NCS)’s Comptroller-General, retired Col. Hammed Ali, had reportedly “queried” the daily consumption of 60 million litres of petrol by Nigerians.
On September 1, 2022, Ali had told a session of the House of Representatives Committee on Finance on the 2023-2025 Medium-Term Expenditure Frame and Fiscal Strategy Paper (MTEF/FSP) that he wondered “why NNPC, which put Nigeria’s daily fuel consumption at 60 million litres, lifts 98 million litres into the market.’’
“I remember that last year, we spoke about this. Unfortunately, this year, we are talking about subsidy again. The over N11 trillion we are going to take as debt, more than half of it is going for a subsidy,” he said.
But setting the records straight, the oil company sad:“The Nigerian National Petroleum Company Limited (NNPC Ltd) wishes to inform members of the general public that between January and August 2022, the total volume of Premium Motor Spirit (PMS) imported into the country was 16.46 billion litres, which translates to an average supply of 68 million litres per day.
“The NNPC Ltd notes the average daily evacuation (Depot truck out) from January to August 2022 stands at 67million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
“Daily Evacuation (Depot load outs) records of the NMDPRA do carry daily oscillation ranging from as low as 4 million litres to as high as 100 million litres per day.
“The NNPC also wishes to point out that rising crude oil prices & PMS supply costs above PPPRA (now NMDPRA) cap had forced oil marketing companies’ (OMCs) withdrawal from PMS import since the fourth quarter of 2017.
“In the light of these challenges, NNPC has remained the supplier of last resort and continue to transparently report the monthly PMS cost under recoveries to the relevant authorities.’’
A statement by Mr Garba Deen Muhammad, the Group General Manager, Group Public Affairs Division of NNPCL given to Persecondnews clarified:“NNPC limited also note the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of N46/litres.
“The combination of these cost elements translates to retail pump price of N462/litres and an average subsidy of N297/litres and an annual estimate N6.5 trillion on the assumption of 60million litres daily PMS supply. This will continuously be adjusted by market and demand realities.’’
NNPC Ltd restated its commitment to ensuring compliance with existing governance framework that requires participation of relevant government agencies in all PMS discharge operations, including Nigerian Ports Authority, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Navy, Nigeria Customs Service, NIMASA and all others.
“NNPC Ltd recognizes the impact of maritime and cross border smuggling of PMS on the overall supply framework. NNPC also acknowledges the possibilities of other criminal activities in the PMS supply and distribution value chain.
“NNPC will continue to engage and work with relevant agencies of the Government to curtail smuggling of PMS and contain any other criminal activities.
“We will continue to deliver on our mandate to ensure energy security for our country with integrity and transparency. We invite any forensic audit of the PMS supply and subsidy management framework of the NNPC,’’ the statement said.
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