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NNPC Limited Claims Petrol Will Sell At N462/Litre Without Subsidy

Published

September 5, 2022

According to the Nigerian National Petroleum Company Limited, NNPCL, consumers would have to pay N462 per litre for premium motor spirit (petrol) without the Federal Government’s subsidy.

In a statement over the weekend, Mr. Garba Deen Muhammad, Group General Manager, Group Public Affairs Division, NNPC LTD, stated that the government was currently paying N297 per litre for the 68 million gallons of gasoline consumed daily.

Even though there have been concerns regarding the amount of gasoline consumed in the nation, NNPCL has maintained that between January and August 2022, 16.46 billion litres of Premium Motor Spirit (PMS) were imported into the nation or an average supply of 68 million litres per day.

The business noted that during the fourth quarter of 2017, “increasing crude oil prices and PMS supply costs beyond PPPRA (now NMDPRA) cap had caused oil marketing firms (OMCs) to withdraw from PMS import.”

“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.

“NNPC limited also notes the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of A46/litre.

“The combination of these cost elements translates to a 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 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, Nigeria Customs Service, NIMASA and all others”.

NNPCL noted that it “recognizes 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 smuggling of PMS and contain any other criminal activities”.

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