By Fatima Saka
The Nigerian National Petroleum Company Limited (NNPC) has said they are ready for a forensic audit of petroleum supply and subsidy management framework.
The group General Manager, Public Affairs Division, NNPC, Garba Deen Muhammad, made statement over the weekend in Abuja while briefing the Newsmen.
Speaking on, the group General Manager said that 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.
He added that the 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 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 loadouts) records of the NMDPRA do carry daily oscillations ranging from as low as four million litres to as high as 100 million litres per day.
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“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.
“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.
“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,” he stated.
