Petrol price soared to N462/l in Q2
FG spent N297/l as subsidy hits N6.5trn annually
The Nigerian National Petroleum Company Limited (NNPC Ltd) has said it is ready for a forensic audit of its Premium Motor Spirit (PMS) import and supply.
The company also said that it has supplied 68 million litres of petrol daily from January to August this year, totalling 16.46 billion litres of imported petrol.
A statement by the Group General Manager, Group Public Affairs Division, Garba Deen Muhammad, on Sunday said NNPC imported in 22.35bn litres of petrol in 2021 which translated to an average supply of 68m litres per day.
Recall that the Comptroller General of Customs Hameed Ali (rtd) recently questioned the daily petrol supply figures, stating it was inflated and needed to be probed.
But in the statement, NNPC Ltd said: “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.”
The oil firm which is the sole importer and supplier of petrol since 2017, it became supplier of last resort after Oil Marketing Companies (OMCs) stopped imports since the fourth quarter of 2017 due to rising crude oil prices and PMS supply costs above PPPRA (now NMDPRA) cap (regulated price).
Corroborating its petrol supply data, the firm said the depot loading data from January to August 2022 show 67m litres daily evacuation, by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) which records daily oscillation ranging from 4m litres to 100m of petrol daily.
NNPC Ltd also stated that the average international market determined landing cost as of the second quarter of this year was US$1.283 per metric ton (MT) and the approved marketing and distribution cost of N46/litre.
“The combination of these cost elements translates to 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 60m litres daily petrol supply. This will continuously be adjusted by market and demand realities,” it noted.
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