Reports reaching Africa Daily New, New York has it that the Nigerian National Petroleum Company, NNPC Limited, has agreed and pledged to submit itself for a financial audit of gasoline supply and subsidy management while adamant that the amount of petroleum supplied each day stayed at 68 million.
Group General Manager, Group Public Affairs Division, NNPC, Mallam Garba Deen had in an announcement made around January and August 2022, ‘the total volume of Premium Motor Spirit, PMS, imported into the country was 16.46 billion liters, which translates to an average supply of 68 million liters per day.’
‘Similarly, import in the year 2021 was 22.35 billion liters, which translated to an average supply of 61 million liters per day.’
The average daily evacuation (depot truck out) from January to August 2022, according to the NNPC ‘stands at 67million liters per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),’ also ‘daily evacuation (depot load outs) records of the NMDPRA do carry daily oscillation ranging from as low as four million liters to as high as 100 million liters per day.’
The company said that from the fourth quarter of 2017, oil marketing companies have stopped importing PMS due to increased crude oil prices and PMS supply costs that are higher than the PPPRA (now NMDPRA) cap, saying: ‘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.’
Regarding costs, NNPC reported that in Q2 2022, the average international market determined landing cost was “US$1,283/MT and the approved marketing and distribution cost of N46/liter.”
Additionally, NNPC noted that the collection of these cost elements ‘translates to retail pump price of N462/liter, an average subsidy of N297/liter and an annual estimate of N6.5 trillion on the assumption of 60 million liters daily PMS supply.’
The NNPC pledged to make certain the ‘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.’
It pledges to take action if illicit activity is detected anywhere along 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 business also promised to carry out our directive to make sure that ‘energy security for our country with integrity and transparency.’
This reported move by the NNPC allowed for transparency in the sector because the general public finds it hard to believe since they ain’t know what goes on begin the background.