The Nigerian National Petroleum Corp (NNPC) has picked 16 consortia for its new crudefor- fuel swap contracts for one year starting in August. The contracts, known as ‘direct sale, direct purchase (DSDP)’ are coveted since they are used to supply nearly all of Nigeria’s gasoline needs as well as cover some of its diesel and jet fuel consumption.
A report by Reuters, which showed this, quoted sources with direct knowledge of the matter to have confirmed the information. “Nigerian National Petroleum Corp (NNPC) has picked 16 consortia for its new crude-for-fuel swap contracts for one year starting in August,” the report read.
The list includes major trading firms, Trafigura, Vitol and Mercuria, oil major, Total TOTP.PA, as well as large Nigerian traders like Sahara Energy SAH.V, Oando OANDO.LG and MRS Oil. The contract has been used to augment shortfall in supply of Premium Motor Spirit (PMS), also known as petrol, which has been a major source of concern to the country. NNPC said in April 20 that it would not increase the ex-depot price of PMS in May. This would be the fourth consecutive month that the corporation has suspended increase in price of the product.
The ex-depot price is the price marketers buy products from depot owners; it determines the pump price at filling stations across the country. Group Managing Director, Malam Mele Kyari, made this known at the end of a closed door meeting with Petroleum Transport Drivers (PTD), National Association of Road Transporters Owners (NARTO) and oil marketers in Abuja. According to the NNPC helmsman: “We want to inform oil marketing companies that NNPC will not increase the pump price of PMS in May. I am giving the assurance and I ask Nigerians to go about their normal businesses; we have over 20 billion litres of petrol in our custody.
“Many of you are aware of this and with the assurance with tanker drivers and NUPENG, there is no need for panic buying of the product. Petrol will be available in all the depots in the country including NNPC dispatched depot across the country, so nobody should panic in buying the product.” On the strike by PTD, the GMD said the strike was associated with NARTO’s inability to increase their compensation which was not resolved last week. “We have given commitment to both NARTO and PTD that we will resolve the issue within a week and come back to the table to have a total closure on the issue.
“We also have a robust engagement with our oil marketing partners in respect of increase in the volume product that is check in the Nigerian market. “We have agreed to work jointly with all the security agencies to contain any possible infractions seen in our borders. We will work as a team to curtail this fraudulent practice with the help of the security agencies,” he noted. He explained that the meeting also discussed issues on payment by Petroleum Equalisation Fund (PEF) to oil marketing companies. He said that all stakeholders agreed in making PMS available to marketers.