The Nigerian National Petroleum Company (NNPC) Limited has insisted that average petrol supply in the country stands at 68 million litres per day.
The company also disclosed that the total volume of petrol imported into the country between January and August 2022, was 16.46 billion litres, which translated to the 68 million litres daily supply.
NNPC made the assertions in a statement issued yesterday and signed by its Group General Manager, Group Public Affairs Division, Mr. Garba Muhammad.
NNPC’s latest clarification followed last week’s claims by the Controller-General of the Nigeria Customs Service (NCS), Col. Hameed Ali, (retd) that the company allowed the release of 98 million litres of petrol per day for local consumption instead of 60 million litres admitted by its own computation.
Speaking during a meeting with National Assembly members last Thursday, Ali had also faulted the petrol subsidy regime, describing it as fraud and not existent.
But reacting to the claims, NNPC in the statement, clarified that between January and August 2022, the total volume of petrol imported into the country was 16.46 billion litres.
The company maintained that import in 2021 was 22.35 billion litres, which translated to an average supply of 61 million litres per day.
The NNPCL stated that it was prepared for any forensic audit if the need arose, adding that if petrol subsidy was removed, a litre of petrol would be selling for N462.
It noted that the average daily evacuation (Depot truck out) from January to August 2022 stood at 67 million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
It explained that 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 state oil company also pointed out that the impact of maritime and cross border smuggling of petrol might be affecting the overall supply framework, acknowledging the possibilities of other criminal activities in the supply and distribution value chain.
NNPC further stated that rising crude oil prices and petrol supply costs above NMDPRA cap had forced oil marketing companies’ withdrawal from petrol import since the fourth quarter of 2017.
In the light of these challenges, the state oil firm explained that it had remained the supplier of last resort and continued to transparently report the monthly petrol cost under recoveries to the relevant authorities.
The statement read: “The NNPC Ltd. wishes to inform members of the general public that between January and August 2022, the total volume of Premium Motor Spirit 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 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 continue to transparently report the monthly PMS cost under recoveries to the relevant authorities.
It also noted that the average first quarter (Q1) 2022 international market determined landing cost was $1,283 per metric tonnes and the approved marketing and distribution cost of N46/litres.
NNPC stated that the combination of these cost elements translated to retail pump price of N462 per litre, an average subsidy of N297 per litre and an annual estimate N6.5 trillion on the assumption of 60 million litres daily petrol supply.
