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Customs query release of 98M PMS litres/day

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By Mercy Kelani

Customs claim that NNPC delivers an extra 38M litres of PMS per day.

On Thursday September 1, 2022, the Nigeria Customs Service, questioned the claim of the Nigerian National Petroleum Company Limited (NNPC) that 60 million litres of petrol consumed daily in the country. Hameed Ali, the Customs Comptroller-General, amidst a session with the House of Representatives Committee on Finance queries the fact that the country consumes 60 million litres of petrol daily and it permits the daily limits of 98 million litres daily; he questioned the reason for the permission.

In response to the queries, the NNPC clarified that the country consumes over 68 million litres of petrol daily. The group general manager of the group public affairs division, Garba Deen Muhammad, on Sunday, September 6, 2022, stated that the company has imported into the country a total volume of 16.46 billion litres of petrol between January and August 2022. This total volume, when translated to an average supply, equals 68 million litres per day.

Average daily evacuation from Jan-Aug 2022 equals 67M litres/day.

According to the petroleum company, the total volume of petrol imports in 2021 was 22.35 billion litres, giving a translation of an average supply of 61 million litres per day. Also, giving a report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), it disclosed that the average daily evacuation from January to August 2022, remained at 67 million litres per day, with daily records of 4 million to 100 million litres per day.

The NNPC also does not overlook the likelihood of other criminal acts in the supply of PMS and distribution value chain such as Smuggling of Premium Motor Spirit (PMS). The organization takes it as its responsibility to proceed with its engagement and work with relevant government agencies to curb smuggling of PMS and curtail every other form of criminal activity. In addition, following the rise in crude oil prices and petrol supply costs above NMDPRA cap, many oil marketing companies have been forced to withdraw from petrol importation since the fourth quarter of 2017.

60M litres of daily PMS supply equals an annual estimate of N6.5T.

Despite the challenges, NNPC continued to be the supplier of last resort and continually gives transparent report of the monthly PMS cost under-recoveries to the essential authorities. It added further that the international market determined landing cost of average Q2 2022 of US$1,283/MT and the cost of distribution and approved marketing of N46 per litre. All this was said amidst recognition of the maritime and cross border smuggling of PMS on the overall supply framework.

Combining the cost elements, the petroleum body said, there is a translation to a Retail pump price of N462 per litre and an average subsidy of N297 per litre. This equals an annual estimation of N6.5 trillion on the supposed 60 million litres of daily petroleum supply. However, there will be a continuous readjustment by market and demand realities. The Nigerian National Petroleum Company Limited (NNPC), therefore made statements to maintain compliance with the framework of the existing governance that requires the collaboration of relevant government agencies concerning all discharge operations of PMS.

To clear allegations, the NNPC submits itself for forensic audit.

The relevant government agencies include the Nigerian Ports Authority, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Navy, Nigeria Customs Service, the Nigerian Maritime Administration and Safety Agency (NIMASA). It will also not cease on its mandate to see to energy Security for the nation together with integrity and transparency. In addition, the petroleum company welcomes any forensic audit of the supply of petroleum and subsidy management framework of the Nigerian oil corporation.


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