NNPC cries out over high cost of fuel importation

The Nigerian National Petroleum Corporation (NNPC) yesterday said the current unprecedented level of petrol importation by the corporation was impacting negatively on its resources for servicing Joint Venture Cash-Call and other obligations.

Group Managing Director of the Corporation, Dr Maikanti Baru, in a detailed presentation told the Joint National Assembly Committee on Petroleum (Downstream) that the sudden and unnatural shock in fuel consumption to record levels has over-stretched NNPC’s fuel supply arrangement.

He lamented that fuel domestic consumption which was originally based on 35 million per day petrol has reached current unprecedented average daily fuel evacuation of 55 million litres since 1st December 2017 to date.

He said it was imperative for security agencies to close-in on the smuggling syndicates, who were cashing in on the obvious petrol price differentials between Nigeria and neighbouring countries to make illicit profit.

In a statement from the corporation, Dr Baru explained that the current situation was also straining the ability of NNPC to sustain the prevailing 100 percent PMS importation in the face of increasing cost.

The GMD said to sustain adequate supply of petroleum products and national energy security, there was the need for the Federal Government to provide flush volumes in January & March, 2018, as well as create enabling environment for other oil marketing companies to participate in the importation of petroleum products.

The statement by spokesman of the corporation, Mr Ndu Ughamadu, quoted Baru to have said that there was the need to double supply in order to raise the fuel sufficiency template back to the 30 days threshold from the current 15 days by bringing in at least two vessels per day for 20 days.

The NNPC GMD, however, explained that the Corporation would require additional funding outside the DSDP regime to achieve this.

Responding, Chairman of the National Assembly Joint Committee, Senator Kabiru Marafa, charged NNPC to resolve the situation within the next seven days.