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Mele Kyari, GCEO, NNPC Ltd, NNPC Logo
The challenge followed claims made by the Controller-General of the Nigeria Customs Service, Col Hameed Ali, (retd) about the fuel consumption figures in the country,
Ali had queried why the Nigerian NNPC LTD, would allow the release of 98 million litres of petrol per day for local consumption, instead of 60 million litres admitted by its own computation.
He had during a meeting with National Assembly members last Thursday said: “I remember that last year, we spoke about this but unfortunately, this year, we are talking about subsidy again.
”If you know this is our consumption, why would you allow that release? Scientifically, you cannot tell me that if I fill my tank today, tomorrow, I will fill the same tank with the same quantity of fuel.
” If I am operating a fuel station and I go to Minna depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening and offload that fuel.
“There is no way I would have sold off that petrol immediately to warrant another load. So, how did you get to 60 million litres per day? That is my problem. The issue of smuggling, if you release 98 million litre in actual, and 60 million litres is used, the balance should be 38 million litres.
”How many trucks will carry 38 million litres every day? Which road are they following and where are they carrying this thing to.
But reacting to the claims made by the Customs CG, the National Oil Company said that between January and August 2022, the total volume of Premium Motor Spirit (PMS) imported into the country was 16.46 billion litres.
In a statement signed by Garba Deen Muhammad, Group General Manager, Group Public Affairs Division, NNPC Ltd, it said the 16.46 billion litres imported into the country between January and August translates to an average supply of 68 million litres per day.
The NNPC Ltd noted that the average daily evacuation (Depot truck out) from January to August 2022 stands at 67 million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
It added that 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 Company also pointed out in the statement that impact of maritime and cross border smuggling of PMS may be affecting the overall supply framework.
It acknowledged the possibilities of other criminal activities in the PMS supply and distribution value chain.
It said that rising crude oil prices and PMS supply costs above PPPRA (now NMDPRA) cap had forced oil marketing companies’ withdrawal from PMS import since the fourth quarter of 2017.
In the light of these challenges, the statement explained that NNPC has remained the supplier of last resort and continue to transparently report the monthly PMS cost under recoveries to the relevant authorities.
The statement reads, “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.
“Similarly, import in the year 2021 was 22.35 billion litres, which translated to an average supply of 61 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.
“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 shall continue to ensure 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.”
