The Nigerian National Petroleum Company Limited, NNPCL, has said that premium motor spirit, popularly known as petrol would cost N462 per litre without being subsidized by the federal government.
This was disclosed by Mr. Garba Deen Muhammad, the Group General Manager, Group Public Affairs division, NNPC Ltd, in a statement issued at the weekend.
According to Muhammad, the federal government is currently spending N297 per litre as subsidy for the 68 million litres of petrol consumed daily.
The NNPCL stated that 16.46 billion litres of petrol which amounts to 68 million lires per day has been imported between January and August 2022.
This follows recent controversy surrounding the volume of petrol consumed in the country.
The recent figures are a significant increment from the 22.35 billion consumed in 2021, which amounts to an average of 61 million litres per day.
Muhammad said, “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 loadouts) 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.
“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.
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“NNPC limited also notes the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of A46/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
Commenting on the 60 million lires daily supply, he said that it will be reviewed continuously by market and demand factors.
The statement added, “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”.
“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”.
Recall that the NNPCL had a fortnight ago deducted N448.78 billion from the Federation Account revenue in August for the purpose of subsidy.
Source: Vanguard
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