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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The government really needs to have an agency regulating how NNPC works. This different data of the release of litres of oil are correlating at all. While the suppliers are saying another thing, the distributors will say a different thing. We the consumers then consume the little we get and it is always at a high price.
The excesses of NNPC needs to be curb there must be check and balance in order to over see their affairs,if not this extra 38m that customs says are been delivered will by syphone by some unscrupulous elements.
The data of release oil are not correlating the channel of the distribution from the supplier to the distributor are saying different things and the people who are the consumer received low amount of the oil and it is cost the government should be able to know how things are done in nnpc so to regulate things
check and balance is very important. Instead of saying different thing. We need to know the accurate things instead of hearing different things
Adequate supervision should be made available to curb the excess petroleum consumed and prevent any kind of illegal activities that might come up.
The nation has a daily use of sixty million litres of gasoline, but it allows ninety-eight million litres per day to be exported; he questioned the rationale for the licence.
Between the months of January and August 2022, the corporation brought into the country a total volume of 16.46 billion litres of gasoline, which is a significant amount.
The Nigerian National Petroleum Corporation (NNPC) does not ignore the possibility of other illegal activities occurring along the supply and distribution chain for premium motor spirit (PMS), such as smuggling of PMS.
It is the responsibility of the organisation to continue its participation and collaborate with the appropriate government agencies in order to put a stop to the illegal trafficking of PMS as well as any other type of criminal behaviour.
Due to the increase in crude oil prices and higher costs associated with the supply of gasoline that are in excess of the NMDPRA cap, several oil marketing companies have been compelled to withdraw from the importation of gasoline starting in the fourth quarter of 2017.
The government needs to have a body that will monitor and regulate how NNPC operates.. evaluation must be done to check their operations and bring everything to order.
All of this was mentioned while acknowledging the impact that smuggling PMS over borders and through the water had on the broader supply structure.
The government issued statements to ensure continued compliance with the governance structure that is already in place, which calls for the coordination of all key government entities in regard to all discharge operations involving PMS.
In addition to this, it will continue to fulfil its responsibility to ensure the nation’s energy security while also maintaining its integrity and transparency.
The government must establish a committee to oversee and control how the NNPC does its business. An assessment must be performed to validate these actions and restore order.
The operations of the NNPC should be actively monitored and accounts should be given frequently on every transactions they carry out
There is lots of opaque deal in the importation of fuel in Nigeria and this is really killing the economy,if this type of shady deal continue,Nigeria will not be able to sustain the subsidy money again.Nigeria need to have is refineries working working.
The sector that needs to be properly monitored and regularly assessed is the oil sector because this is the no 1 source of revenue to the country
In order to stop the illicit trafficking of PMS as well as any other form of criminal activity, the organization must continue to participate in and work in conjunction with the relevant government agencies.
Customs querying the release of 98M PMS litres/day is a welcome move but shouldn’t be limited to PMS alone. We should do the same to crude oil extracted from oil land and exported to other countries. How many oil per barrel per day is being extracted, how many is sold sold and how many is missing?
Emphasis is being laid on imported PMS product what about the exported crude oil are there no diversion of some barrels of crude oil by some cabals? Corruption has eaten deep into the fabric of this country. Who would have imagined that such atrocity is going on within NNPC. Please, the Custom keep up with the good job and extend is to every boarder of the country. I hope that there is no corrupt element among the Custom officers.