By Adewole Kehinde.
“Courts of equity make their decrees so as to arrive at the justice of the case without violating the rules of law” – Sherrilyn Kenyon
NNPC Limited was in the news again last week. This time, it was the Customs Comptroller-General, Hameed Ali, who challenged the NNPC data on the daily consumption of petrol at 60 million litres.
Quoting Hameed Ali during a session with the House of Representatives Committee on Finance last Thursday, he said, “If we are consuming 60 million litres of PMS per day, by their computation, why would you allow the release of 98 million litres per day? If you know this is for our consumption, why would you allow that release? “
Many Nigerians took over the internet to attack NNPC Limited, including some editors who I expected to go further to hear from NNPC Limited before attacking the company.
My joy is that the NNPC Limited, under the transparent and accountable management of Mele Kyari, has come to equity with clean hands by insisting that the company supplied 68 million litres of petrol across Nigeria daily.
In a statement by its Group General Manager, Group Public Affairs Division, Garba Deen Muhammad, insisted that the company imported a total volume of 16.46 billion litres of petroleum into the country between January and August 2022, translating to an average of 68 million litres per day.
The NNPC Limited further clarified that the combination of various present cost elements has translated to a retail pump price of N462 per litre, adding that the subsidy payment of N297 is to make the product affordable for the country.
NNPC Limited Group General Manager, Group Public Affairs Division, Garba Deen Muhammad, further said that petrol imports in 2021 were 22.35 billion litres, which translated to an average supply of 61 million litres per day.
It said the average daily evacuation (depot truck out) from January to August 2022 stood at 67 million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
It also stated that the NMDPRA’s daily evacuation (depot load-outs) records range from 4 million litres to 100 million litres per day.
The company said it recognized 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. As a responsible business entity, NNPC will continue to engage and work with relevant agencies of the government to curtail the smuggling of PMS and contain any other criminal activities, “the firm said.
The company also pointed out in the statement that rising crude oil prices and petrol supply costs above the NMDPRA cap had forced oil marketing companies to withdraw from petrol importation 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 the average Q2 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost was N46/litre.
“The combination of these 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 PMS supply. This will continuously be adjusted by market and demand realities,” it said.
“NNPC Ltd shall continue to ensure compliance with the existing governance framework that requires the participation of relevant government agencies in all PMS discharge operations, including Nigerian Ports Authority, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Navy, Nigerian Customs Service, NIMASA and all others.”
“NNPC Ltd recognizes the impact of maritime and cross-border smuggling of PMS on the overall supply framework. NNPC also acknowledges the possibility of other 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 the smuggling of PMS and contain any other criminal activities.
Known for its transparency and accountability, the NNPC Limited has challenged those in doubt to invite any forensic audit of the PMS supply and subsidy management framework of the NNPC.
I am even challenging the Nigeria Customs Service to lead by example by subjecting the service to a forensic audit.
I am confident that NNPC Limited will continue to fulfil its mandate of ensuring the country’s energy security with integrity and transparency.
Adewole Kehinde is an Energy Sector Fellow/Consultant for the Abuja Chamber of Commerce and Industry, Policy Centre. 08166240846, 08123608662 Email: kennyadewole@gmail.com
