The Nigerian National Petroleum Company (NNPC) Limited has expressed readiness for a forensic audit of itsfuelsupplyandsubsidy management, insisting that the daily fuel supply is 68 million. Thiscame afterthe Comptroller- General of Nigerian Customs Service (NCS), Hameed Alli, last week faulted the NNPC’s claim that over Subsidy Controversy: We’re ready for forensic audit –NNPC N6 trillion will be paid as fuel subsidy in 2022.
The retired military officer, who faced the House of Representatives on Thursday, said the NNPC cannot scientifically prove the 98 million litres/day consumptionitclaims, alleging thatthe company was supplying an excess of 38 million litres of fuel daily. But in a statement by the Group General Manager, Group Public Affairs Division, Garba Deen Muhammad, the NNPC said between January and August: “The total volume of Premium MotorSpirit(PMS) imported into the country was 16.46 billionlitres, whichtranslatesto an average supply of 68 million litres per day”. Itadded:”Similarly, import in the year 2021 was 22.35 billion litres, which translatedto an average supply of 61 million litres per day.” The NNPC said the average daily evacuation (depot truck out) in the same: “Standsat 67millionlitresper day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),” while “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 the rising crude oil prices and petrol supply costs above the Petroleum Products Pricing Regulatory Agency (PPPRA) (now NMDPRA) cap had caused oil marketing companies’ withdrawal from PMS import since the fourth quarter of 2017. Muhammad said: “In the light of these challenges, the NNPC has remained the supplier of last resort and continues to transparently report the monthly PMS cost under-recoveries to the relevant authorities.”
On cost, he said the average international market determined landing cost in Q2 2022 was: “US$1,283/MT and the approved marketing and distribution cost of N46/litre”.
According to the firm, 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, including Nigerian Ports Authority, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Navy, Nigeria Customs Service, NIMASA and all others”.
It acknowledged the possibilities of criminal activities in the PMS supply and distribution value chain. The company said: “As a responsible business entity, the NNPC will continue to engage and work with relevant agencies of the government to curtail smuggling of PMS and contain any other criminal activities.”
The company also pledged to deliver on our mandate of ensuring: “Energy security for our country with integrity and transparency.”