Posted By: John Ofikhenua, Abuja



The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, on Sunday disclosed that the current Landing Cost of petrol is N171 per litre, meaning that at N145 per litre, the Federal Government is currently paying a subsidy of N26 on a litre of the commodity.

Speaking with reporters in Abuja, he said that the normal consumption of PMS in Nigeria had risen to over 50 million litres per day, due to hoarding and diversion, mainly as a result of cross-border smuggling, due to the PMS price disparity that exists between Nigeria and its neighbours.

Commenting on the Landing Cost of PMS, Baru said the Cost, Insurance and Freight price of PMS was $620 per metric tonne, adding that at N305 to a dollar, the landing cost translates to N171 per litre.

Baru said the Federal Government has given approval for preferential and speedy treatment to be given to vessels carrying Premium Motor Spirit (PMS), also called petrol, to end the lingering crisis in Nigeria.

According to him, the Nigerian Navy, Nigerian Ports Authority, NPA, Customs and the Nigerian Maritime Administration and Safety Agency, NIMASA are currently expediting the clearance of fuel vessels and anchorage services to facilitate speedy product transfers to various depots including during weekends and public holidays.

The NNPC helmsman noted that President Muhammadu Buhari is deeply concerned about the fuel crisis and had ordered all stakeholders involved, including security agencies to ensure a speedy resolution of the situation.

In addition, he disclosed that the NNPC had commenced a 24-hour loading and sales operations at all depots and its mega stations across the country.

“Major marketers were also advised to carry out 24-hour operations, most of whom have been complying. This has increased load-out from the Depots significantly and continuous sales at the filling stations nationwide,” Baru noted.

He affirmed that in addition to the regular supply circle, the NNPC had programmed the delivery of additional 300 million liters in December 20l7 and January 2018 to beef up national reserves to 45 million liters per day, well above the normal consumption requirement of between 27 and 28 million liters per day.

He also declared that over the last two weeks, the national truck-out capacity has been beefed up to an average of l,500 trucks, about 52 million litres per day, which he explained, was higher than the normal consumption of 850 trucks per day.

Furthermore, the NNPC boss stated that currently, 13 vessels, with an average capacity of 650 million litres, are discharging the commodity at different ports across the country, while noting that three vessels with the commodity are coming in before the end of the week, bringing the combined quantity of the product in depots to 814 million litres of petrol till the end of the month.

He added that 14 shuttle tankers, with a combined capacity of 187 million litres of the commodity would also be discharging the product at various destinations across the country in the next three days.

In addition to the importation of the product, Baru noted that the Port Harcourt and Kaduna Refineries are currently contributing about one million litres per day and 2.8 million litres per day of PMS to the country’s fuel supply respectively, adding that since the fuel crisis began, both refineries had contributed a total of about 61 million litres.

Also, to ensure the speedy resolution of the crisis, Baru disclosed that the NNPC had activated the ‘Fuel War Room’, comprising the NNPC, Department of Petroleum Resources, DPR, Petroleum Products Pricing Regulatory Agency, PPPRA and the Petroleum Equalisation Fund, PEF.

He said the team is tasked with the responsibility of coordinating all intervention activities for supply and distribution of PMS nationwide, adding that with the support of security agencies, the team, with the support of Security Agencies, is already working round the clock to ensure a speedy resolution of the current fuel situation.

He explained that with all these measures, and if full compliance is achieved, the crisis would end within the next two days, adding that efforts have been put in place to ensure the crisis did not go beyond this week.

Baru also accused black marketers of sabotaging efforts to end the fuel crisis, stating that most of the peddlers, permanently put their vehicles in queues at petrol stations, and after purchasing, discharge the products into containers and return to join the queues.

victoronyekwelu:
When GEJ removed subsidy Nigerians shout flavour even drop song now PMB his here doing worst and no one can stand up to him. I swear the man fit this country

Ehiscotch:


True (but not entirely). There was so much scam in the subsidy scheme that the subsidy never reflected in the prices. I can tell you that fuel was still sold at 150 in most parts of Benue state that when subsidy was removed it barely affected us so we didn't need to protest.

Ehiscotch:
To those commenting above, the price of fuel on the international market has increased and most of the products are imported so there is need to subsidize the products in order not to cause hardship.

Although there is so much room for fraud in this subsidy scheme that marketers would take advantage of.

2cato:
but fashola and apc told gej to reduce the price of petrol when crude was sold for less than $50 why cant they do thesam.
I remember when bubu clain that subsidy is a scam by pdp which subsidy 26naira is the cattle rearer talking about

Desyner:
Government of paradox.

odogwubiafra:
Govt of lies. Lies can only get you to power, but can not keep you in power.
Bihari resign and let Nigeria move forward.

Ehiscotch:


This would continue as long as the oil prices keep fluctuating. APC or PDP.

Desyner:
All these are happening cos we don't refine locally. Instead of refining what we have to create employment we sell it and use its proceed to look for oil in Nasarawa and Kano basin.

Ehiscotch:


That's the essence of modular refineries. When the private individuals come in and are able to reduce importation then we'd be able to regulate the prices a bit.