*The Nigerian National Petroleum Company Limited says it is ready to submit itself for forensic audit of fuel supply and subsidy management, pledging compliance with existing governance framework in working with relevant government agencies

Isola Moses | 绿帽献妻

Amid the ongoing arguments and varied submissions on the continued payment of fuel subsidy, the Nigerian National Petroleum Company Limited (NNPCL) has stated that the Premium Motor Spirit (PMS), otherwise known as petrol, will cost energy consumers N462 per litre without the Federal Government鈥檚 subsidy.

Malam Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of NNPCL, said this in a statement issued Sunday, September 4, 2022.

Malam Melee Kyari, Group Managing Director/CEO of NNPC Limited聽

The Company said: 鈥淭he NNPC Ltd notes the average daily evacuation (Depot truck out) from January to August 2022 stands at 67million 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 oscillation ranging from as low as 4 million litres to as high as 100 million litres per day.”

Muhammad also noted that the 鈥渞ising crude oil prices and PMS supply costs above PPPRA (now NMDPRA) cap had forced Oil Marketing Companies鈥� (OMCs) withdrawal from PMS import since the fourth quarter of 2017.

鈥淚n 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.”

The NNPC further noted that the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of A46/litre.

The Group General Manager, Group Public Affairs Division as well stated: 鈥淣NPC Ltd shall continue to ensure 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.鈥�

According to NNPC Limited, the National Oil Company 鈥渞ecognises the impact of maritime and cross-border smuggling of PMS on the overall supply framework.

“NNPC also acknowledges the possibilities of other criminal activities in the PMS supply and distribution value chain.”

The statement said: 鈥淎s 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.鈥�

NNPC set for forensic audit of fuel supply: Muhammad

In a related development, the Nigerian National Petroleum Company Limited (NNPCL) has offered to submit itself for forensic audit of fuel supply and subsidy management, as the Company insists that daily fuel supply is 68 million litres.

Malam Muhammad, who said this in a statement Sunday, disclosed that between January and August 2022, the total volume of PMS imported into the West African country was 16.46 billion litres, which translated to an average supply of 68 million litres per day.

Likewise, he stated that the import in 2021 was 22.35 billion litres, which translated into an average supply of 61 million litres per day.

The Company also restated that 鈥渢he 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).