NNPCL: petrol to sell for N462/litre without subsidy – Newstrends
Connect with us

Business

NNPCL: petrol to sell for N462/litre without subsidy

Published

on

  • Corporation defends 68m-litre daily consumption claim

  • Dares Customs CG, ready for forensic audit

Without subsidy, petrol will sell for N462 per litre, the Nigerian National Petroleum Company (NNPC) Limited said yesterday.

It said the average international market-determined landing cost in the second quarter of this year was $1,283 per metric tonne.

Marketing and distribution cost is N46/litre, it said.

A combination of the cost elements translates to a retail pump price of N462/litre, an average subsidy of N297/litre and an annual estimate of N6.5 trillion on the assumption of 60 million litres of daily premium motor spirit (PMS or petrol) supply.

The NPPC offered to submit itself for a forensic audit of fuel supply and subsidy management.

It insisted that the daily fuel supply is 68 million litres.

In a statement by Group General Manager, Mallam Garba Deen Muhammad, the NNPC said the average supply corresponded with the imports.

He was reacting to last Thursday’s comments by Comptroller-General of Customs Hameed Ali, who said he found it hard to understand why the NNPC, which put Nigeria’s daily fuel consumption at 60 million litres, releases 98 million litres into the market.

READ ALSO:

He spoke during an interactive session with the House of Representatives Committee on Finance on the 2023-2025 Medium Term Expenditure Frame and Fiscal Strategy Paper.

Ali said: “If we are consuming 60 million litres of PMS 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?

“Scientifically, you cannot tell me that if I fill my tank today, tomorrow I will fill the same tank with the same quantity of fuel.

“If I am operating a fuel station today and I go to Minna depot, lift petrol and take it to Kaduna, I may get to Kaduna in the evening and offload that fuel.

“There is no way I would have sold off that petrol immediately to warrant another load.

“So, how did you get to 60 million litres per day? That is my question.

“On the issue of smuggling, if you release 98 million litres in actual and 60 million litres is used, the balance should be 38 million litres.

“How many trucks will carry 38 million litres every day? Which road are they following and where are they carrying this thing to?”

Minister of Finance, Zainab Ahmed, speaking when she appeared before the panel on August 18, put the projected daily payment for fuel subsidy at N18.39 billion.

“The total amount of subsidy per day is N18.397 billion per day,” she said.

“So, if you are projecting for the full year, it would be N6.715 trillion. If you are projecting for half a year, it would be 50 per cent of that.”

According to the minister, this was calculated using the information provided by the NNPC.

She said the information showed that 64.96 million litres of fuel are the projected average daily truck out.

She also said N1.774 trillion was paid to independent oil marketers as subsidy in four years.

Yesterday, the NPPC said between January and August 2022, “the total volume of PMS imported into the country was 16.46 billion litres, which translates to an average supply of 68 million litres per day”.

READ ALSO:

It added: “Similarly, import in the year 2021 was 22.35 billion litres, which translated to an average supply of 61 million litres per day”.

The NNPC said 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)”.

It added: “Daily evacuation (depot load outs) records of the NMDPRA do carry daily oscillation ranging from as low as four million litres to as high as 100 million litres per day.”

The company said rising crude oil prices and PMS supply costs above the NMDPRA cap had caused oil marketing companies’ 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,” it said.

On cost, NNPC said the average international market-determined landing cost in Q2 2022 was US$1,283/MT, while the approved marketing and distribution cost is N46/litre.

It said the combination of these cost elements “translates to the retail pump price of N462/litre, an average subsidy of N297/litre and an annual estimate of N6.5 trillion on the assumption of 60 million litres daily PMS supply”.

The NNPC promised to ensure “compliance with an existing governance framework that requires the participation of relevant government agencies in all PMS discharge operations”.

These include the Nigerian Ports Authority (NPA), Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Navy, Nigeria Customs Service, and the Nigerian Maritime Administration and Safety Agency (NIMASA), among others.

It acknowledged the possibilities of 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,” it said.

The company also pledged to deliver “on our mandate of ensuring energy security for our country with integrity and transparency”.

Daily Trust

Business

PH refinery: 200 trucks will load petroleum products daily, says Presidency

Published

on

Port Harcourt Refinery

PH refinery: 200 trucks will load petroleum products daily, says Presidency

No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.

A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.

Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.

READ ALSO:

Reacting, Dare said, “200 trucks are expected to load products daily from the refinery, Renewing the Hopes of Nigeria.”

He added that “the Port Harcourt refinery has two wings.

“The Old Refinery comes on stream today with an installed production capacity of 60, 000 barrels per day of crude oil.”

 

PH refinery: 200 trucks will load petroleum products daily, says Presidency

Continue Reading

Business

Breaking: CBN increases interest rate to 27.50%

Published

on

Breaking: CBN increases interest rate to 27.50%

 

The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.

This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.

The Monetary Policy Rate measures the benchmark interest rate.

The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.

He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.

The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.

Continue Reading

Business

Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

Published

on

Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

 

Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.

The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.

The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.

“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.

“The unemployment rate among males was 3.4% and 5.1% among females.

“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”

Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.

Employment rate – 76%

The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.

“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.

Self-employment – 85.6%

The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.

It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”

Continue Reading

Trending