BUSI­NESS NNPC strate­gic re­serves drop to 14 days suf­fi­ciency

Daily Trust - - BUSINESS - By Daniel Adugbo

The fuel scarcity rock­ing the coun­try fol­low­ing the in­abil­ity of mar­keters to im­port fuel may have forced the NNPC to dip into its strate­gic re­serves.

As of Tues­day, the coun­try has only 14 days suf­fi­ciency as against the 30/32 days suf­fi­ciency the cor­po­ra­tion keeps for un­fore­seen cir­cum­stance.

NNPC and its down­stream sub­sidiary, the Pipe­lines and Prod­ucts Mar­ket­ing Com­pany (PPMC), usu­ally main­tain in­land and ma­rine strate­gic re­serves so as to en­sure en­ergy suf­fi­ciency in line with its man­date.

Speak­ing Tues­day be­fore the Se­nate Com­mit­tee on Petroleum Down­stream in Abuja, Man­ag­ing Di­rec­tor of PPMC, Prince Haruna Mo­moh, said with the in­volve­ment of mar­keters in the im­por­ta­tion of fuel, the strate­gic re­serve would be re­stocked back to 30 days suf­fi­ciency by month end.

“I will like to put on record that based on the forty (40) mil­lion litres na­tional daily con­sump­tion, the NNPC/ PPMC is re­spon­si­ble for fifty (50%) per­cent of the al­lo­ca­tion from the Petroleum Prod­ucts and Pric­ing Reg­u­la­tory Agency (PPPRA) and other mar­keters are re­spon­si­ble for the other 50 per­cent.

“The NNPC/PPMC as the sup­plier of last re­sort en­sures that when mar­keters with­drew from sup­ply­ing, the coun­try was sus­tained with the 50 per­cent sup­plied from the in­land and ma­rine strate­gic re­serves,” Mr. Mo­moh said.

Re­spond­ing to a ques­tion on the cause of the re­cent tight­ness in fuel sup­ply, Prince Mo­moh af­firmed that based on the in­for­ma­tion made avail­able to him by the Ma­jor Mar­keters As­so­ci­a­tion of Nigeria, MO­MAN, and the In­de­pen­dent Mar­keters As­so­ci­a­tion of Nigeria, IPMAN, lack of sub­sidy pay­ment was the rea­son they sus­pended im­por­ta­tion of petroleum prod­ucts to the coun­try, adding that with the pay­ment of sub­sidy claims for third and fourth quar­ters of 2013 to mar­keters run­ning to the tune of N41 bil­lion re­cently, the mar­keters have stepped up sup­ply to the mar­ket.

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