NNPC insists that 68 million liters of gasoline are supplied daily across Nigeria

The Nigerian National Petroleum Company Limited insisted on Sunday that the country consumes 68 million liters of gasoline a day.

NNPC Limited, in a statement by its Group Managing Director, Group Public Affairs Division, Garba Deen Muhammad, said it imported a total volume of 16.46 billion liters of oil into the country between January and August 2022.

This, according to the company, translated into an average supply of 68 million liters per day.

He said that the combination of various current cost elements resulted in a retail pump price of N462 per litre, adding that the subsidy payment of N297 is aimed at making the product affordable to the country.

The response came days after the Nigerian Customs Service questioned the NNPC's claim that the country consumes 60 million liters of gasoline a day.

The Comptroller General of Customs, Hameed Ali, in a session with the House of Representatives Finance Committee last Thursday, said that while the company puts daily gasoline consumption at 60 million liters, why does it allow 98 million liters to be removed every day.

"If we consume 60 million liters of PMS per day, according to their calculations, why would you allow the release of 98 million liters per day? If you know that is our consumption, why would you allow this release?” Mr. Ali asked.

Responding, the NNPC in its statement said it imports an average of 68 million liters of gasoline per day.

Similarly, he said gasoline imports in 2021 were 22.35 billion liters, translating to an average supply of 61 million liters per day.

He said the average daily discharge (dumping truck) from January to August 2022 stood at 67 million liters per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA ).

He added that the NMDPRA's daily evacuation records (depot loadings) range from as little as 4 million liters to 100 million liters per day.

The company said it recognizes the impact of maritime and cross-border smuggling of PMS on the overall supply framework.

“NNPC also recognizes the possibilities of other criminal activity within the PMS supply and distribution value chain. As a responsible business entity, NNPC will continue to engage and work with agencies authorities to reduce PMS smuggling and contain other criminal activity,” the company said.

The company also pointed out in the statement that rising crude oil prices and the cost of gasoline supply above the NMDPRA (formerly PPPRA) cap have forced oil marketing companies to pull out of gasoline imports since the fourth quarter of 2017.

“In light of these challenges, NNPC has remained the provider of last resort and continues to transparently report monthly under-recoveries of PMS costs to the relevant authorities.

He reported that the average landing cost determined by the international market in Q2 2022 was USD 1,283/tonne and the approved marketing and distribution cost was N46/litre.

“The combination of these cost elements results in a retail pump price of N462/litre and an average subsidy of N297/litre and an annual estimate of N6.5 trillion on the assumption of a daily PMS supply of 60 million liters. This will be continually adjusted based on market realities and demand,” he said.

“NNPC Ltd shall continue to ensure compliance with the existing governance framework which requires the involvement of relevant government agencies in all PMS discharge operations including the Nigerian Ports Authority, Nigerian Midstream and Downstream Petroleum, Nigerian Navy, Nigeria Customs Service, NIMASA and all others.

“NNPC Ltd recognizes the impact of maritime and cross-border smuggling of PMS on the overall supply framework. distribution of PMS.As a responsible business entity, NNPC will continue to engage and work with relevant government agencies to reduce the smuggling of PMS and contain any other criminal activity.

"We will continue to deliver...