Follow Us on Google
From Uche Usim Abuja
As the actual daily petrol consumption remains shrouded in secrecy, the Comptroller General of the Nigeria Customs Service (NCS), Hameed Ali and the Group Chief Executive Officer of the Nigeria National Petroleum Company Limited (NNPCL), Mele Kyari have clashed over the matter.
The Customs boss lifted the lid on opaqueness of the petrol consumption figures last week, at a meeting in the National Assembly where he wondered why the NNPCL would allow the release of 98 million litres of petrol per day for local consumption, instead of 60 million litres admitted by its own computation.
“I remember that last year, we spoke about this but unfortunately, this year, we are talking about subsidy again.
“The issue is not about smuggling of petroleum products. I have always argued this with NNPC. If we are consuming 60 million litres per day by their own computation, why would you allow the release of 98 million litres per day?.
”If you know this is our consumption, why would you allow that release?”, Ali stated.
But reacting to the Customs boss’ position, the NNPCL GCEO, Mele Kyari, through the Spokesman, Garba Deen Muhammad, swore to the transparency culture of the company and invited anyone who feels otherwise to subject its petrol supply and subsidy management framework to a forensic audit.
He revealed 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.
According to the national oil company, the figure represents 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 statement reads.
“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 load outs) 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.
“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.
This will continuously be adjusted by market and demand realities.
“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.”
The national oil company, however, said it recognised the impact of maritime and cross-border smuggling of petrol on the overall supply framework.
It also acknowledged the possibilities of other criminal activities in 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 statement added.
