MON, 05 SEPT, 2022-theGBJournal| NNPC Limited Sunday published the total volume of Premium Motor Spirit (PMS or Petrol) imported into the country so far in 2022, justifying at the same time the huge expenditure on petrol subsidy by the Federal Government.
The publication follows intense scrutiny by the House of Representatives’ Committee on Finance on the Federal Government’s expenditure on petrol subsidy which NNPC estimates at N6.5 trillion annually.
The NNPC, while explaining the subsidy claim said, the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of N462/litre.
‘’The combination of these costs 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 60 million litres daily PMS supply. This will continuously be adjusted by market and demand realities,’’ NNPC said.
The state-run behemoth said it imported 16.46 billion litres in total between January and August 2022, which translates to an average supply of 68 million litres per day. Similarly, import in 2021 topped 22.35 billion litres, which translated to an average supply of 61 million litres a day.
It said the 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).
‘’The Daily evacuation 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,’’ the NNPC noted.
The NNPC also argued that rising crude oil prices and PMS supply costs above PPPRA (now NMDPRA) cap had forced oil marketing companies’ withdrawal from PMS import since the fourth quarter of 2017.
‘’In 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.’’
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