The Nigerian National Petroleum Company Limited (NNPC) says
it is ready for a forensic audit of its petrol supply and subsidy management
framework.
Garba Deen Muhammad, group general manager, public affairs
division, NNPC, said this in a statement on Saturday.
The Nigerian Customs Service (NCS) had refuted claims by the
NNPC Limited that citizens consume about 60 million litres of petrol daily.
It further alleged that the oil company was supplying an
excess of 38 million litres of petrol daily since “98 million litres” were
lifted daily from the depots.
“If I am operating a
fuel station today 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,” Hammed
Ali, comptroller-general of Customs, had said.
“So, how did you get to 60 million litres per day? That is
my question. The issue of smuggling, if you release 98 million litres in actual
and 60 million litres are 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?”
Responding to this in the statement, NNPC said between
January and August 2022, the total volume of premium motor spirit (PMS), better
known as petrol, imported into the country was 16.46 billion litres.
According to the company, the figure represents 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 statement reads.
“The NNPC Ltd notes 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).
“Daily evacuation (depot load outs) records of the NMDPRA do
carry daily oscillation ranging from as low as four 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 that the average Q2, 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 a
retail pump price of N462/litre and an average subsidy of N297/litre and an
annual estimate of N65 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 the 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.”
The national oil company, however, said it recognised the
impact of maritime and cross-border smuggling of petrol on the overall supply
framework.
It also acknowledged 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,” the statement adds.
“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.”
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