The Nigerian National Petroleum Company Limited (NNPC Ltd) has said, Nigerians consumed a total volume of 68 million litres of petrol daily between January and August 2022.
NNPC Ltd disclosed this in a statement issued by its Group General Manager, Group Public Affairs Division, Garba Deen Muhammad on Saturday, September 3, 2022 in Abuja.
The statement noted that the company imported a total volume of 16.46 billion Iitres of Premium Motor Spirit (PMS) into the country during the period.
Similarly, it said, it imported a total volume of 22.35 billion litres in 2021, which translated to an average supply of 61 million litres per day.
The company’s clarification was in response to the Director General of the Nigeria Customs, Col. Hameed Ali, who contested the lifting of 98 million of petrol instead of the actual consumption figure of 60million litres.
“The NNPC Ltd notes the average dai y evacuation (Depot truck out from January to August 2022 stands at 67mm: (on 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 miliion litres per day.
“The NNPC also wishes to point out that rising crude or prices and PMS supply costs above PPPRA (now NMDPRA) cap had forced oil marketing companies’ (OMCs) to 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 Q2, 2022 international market determined landing cost was US$1,283/MT and the approved market ng 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 W297/litre and an annual estimate of N6.5 trillon on the assumption of 6O milion Iitres 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”, the statement said.