Nigerian National Petroleum Company (NNPC) Limited, which asserts that daily gasoline supply is 68 million, has offered to submit to a forensic examination of fuel supply and subsidy administration.
Between January and August 2022, "the total volume of Premium Motor Spirit (PMS) imported into the country was 16.46 billion litres, which translates to an average supply of 68 million litres per day," according to a statement from NNPC signed by Mallam Garba Deen Muhammad, Group General Manager (Group Public Affairs Division).
Similar to that, imports in 2021 were 22.35 billion liters, or an average supply of 61 million liters per day.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the average daily evacuation (depot truck out) from January to August 2022 "stands at 67 million liters per day," but "daily evacuation (depot load outs) records of NMDPRA do carry daily oscillation ranging from as low as four million liters to as high as 100 million liters per day."
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The company said that during the fourth quarter of 2017, oil marketing companies had stopped importing PMS due to increased crude oil prices and PMS supply costs that were higher than the PPPRA (now NMDPRA) cap.
In view of these difficulties, it was stated: "NNPC has continued to serve as the supplier of last resort and to transparently disclose the monthly PMS cost under-recoveries to the necessary authorities."
In terms of price, NNPC reported that the average landing cost in the foreign market for Q2 2022 was "$1,283/MT and the permitted marketing and distribution cost, N46/litre."
The combination of these cost factors "translates to retail pump price of N462/litre, an average subsidy of N297/litre and a yearly estimate of N6.5 trillion on the premise of 60 million gallons daily PMS supply," the document added.
Additionally, the business promised to fulfill its commitment to guaranteeing "energy security for our country with integrity and openness."
