The Nigerian National Petroleum Company Limited (NNPCL) says that premium motor spirit (PMS) popularly known as petrol will cost N462 per litre without the Federal Government’s subsidy.
NNPCL Group General Manager, Group Public Affairs Division Mr. Garba Deen Muhammad stated this in a statement on Sunday.
Last week Customs boss, Col. Hameed Ali, questioned the figures given by the NNPCL for the daily consumption of petrol in the country.
He said, “The issue is not the smuggling of petroleum,” Col Ali said. “I have always argued this with NNPC. If we are consuming 60 million litres of petrol per day by their own computation, why in the world would you allow the lifting of 98 million litres per day?
He added, “That computation, to me, is not believable.”
NNPCL in its statement on Sunday said “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 2O22 stands at 57million 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 and 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 continues to transparently report the monthly PMS cost under-recoveries to the relevant authorities.
“NNPC limited also notes the average 2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of N46/|litre. The combination of these cost elements translates to retail pump price of N462/litre and an average subsidy of N297/litre and an annual estimate of N6.5 trillion on the assumption of 60 million 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.
“As a responsible business entity, 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.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.