Why kerosene is beyond reach –NNPC
The Nigerian National Petroleum Corporation (NNPC) has attributed the scarcity of kerosene to diversion of the product to neighbouring countries, industrial use, aviation fuel, sharp practices by middlemen and pipeline vandalism.
Group Managing Director of the Corporation Engr. Andrew Yakubu made this disclosure on Tuesday during the two-day investigative public hearing on supply, distribution, expenditure and subsidy on kerosene in the Senate.
According to him, the product which is meant for the masses is not readily available in the market due to a number of reasons ranging from incessant pipeline vandalism and diversion of the product to road construction purpose.
Answering a question on whether kerosene subsidy is still in place, the NNPC boss said that he met the subsidy regime when he assumed office in June 2012.
“The NNPC takes crude at international price and sells it at the domestic market at regulated price of N50 per liter,” he stated.
On what the NNPC is doing to stop kerosene diversion, the NNPC helmsman said that the Corporation had no power to police marketers and sanction them.
Commenting on the issue of the legality or otherwise of kerosene subsidy, the NNPC Company Secretary, Anthony Madichie, citing Petroleum Act section 6 sub-section 1, said only the minister of petroleum resources has the authority to fix petroleum product prices, stressing that if a presidential directive is not gazetted, such directive will not be effective.
Managing Director of the Pipelines and Products Marketing Company (PPMC), a subsidiary of the NNPC, Prince Haruna Momoh, said that kerosene is sourced for the Nigerian market through importation and domestic refining, adding that Dual Purpose Kerosene (DPK) is sold to coastal marketers, Major Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and NNPC Retail.
“I can confirm to this committee the statistics for the supply of DPK is as follows. In 2010, NNPC supplied 2,515,582.44 metric tonnes of DPK, in 2011, NNPC 1,922,263.56 metric tonnes, in 2012, NNPC supplied 2,622,843.20 metric tonnes and in 2013, NNPC supplied 2,671,747.97 metric tonnes, making a total of 9,732,437.17 metric tonnes,” Prince Momoh said.