BUSINESS NNPC strategic reserves drop to 14 days sufficiency
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.