The Nigerian National Petroleum Company Limited (NNPC Ltd) says it is paying N297 subsidy on every litre of Premium Motor Spirit, otherwise known as petrol, that is sold in the country.

The NNPC said the combination of various present cost elements has translated to retail pump price of N462 per litre.

It added that the subsidy payment of N297 is to make the product easily affordable to Nigerians.

The company made this known in a statement issued on Sunday, saying Nigeria consumes 68 million litres of fuel daily.

The statement read: “The Nigerian National Petroleum Company Limited (NNPC Ltd) wishes to inform members of the general public that between January and August 2022, the total volume of Premium Motor Spirit (PMS) imported into the country was 16.46 billion litres, which translates to an average supply of 68 million litres per day.

“Similarly, import in the year 2021 was 22.35 billion litres, which translated to an average supply of 61 million litres per day.

”The NNPC Ltd notes the average daily evacuation (Depot truck out) from January to August 2022 stands at 67million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Daily Evacuation (Depot load outs) records of the NMDPRA do carry daily oscillation ranging from as low as 4 million litres to as high as 100 million litres per day.

READ ALSO: Customs boss faults NNPC on fuel consumption, says subsidy fraudulent

“The NNPC also wishes to point out that rising crude oil prices and PMS supply costs above PPPRA (now NMDPRA) cap had forced oil marketing companies’ (OMCS) withdrawal from PMS import since the fourth quarter of 2017. In the light of these challenges, NNPC has remained the supplier of last resort and continues to transparently report the monthly PMS cost under-recoveries to the relevant authorities.

“NNPC limited also notes the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of N46/litre. The combination of these cost elements translates to retail pump price of N462/litre and an average subsidy of #297/litre and an annual estimate of #6.5 trillion on the assumption of 60 million litres daily PMS supply.

“This will continuously be adjusted by market and demand realities. NNPC Ltd shall continue to ensure compliance with existing governance framework that requires participation of relevant government agencies in all PMS discharge operations, including Nigerian Ports Authority, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Navy, Nigeria Customs Service, NIMASA and all others.

“NNPC Ltd recognizes the impact of maritime and cross-border smuggling of PMS on the overall supply framework. NNPC also acknowledges the possibilities of other criminal activities in the PMS supply and distribution value chain.

“As a responsible business entity, NNPC will continue to engage and work with relevant agencies of the Government to curtail smuggling of PMS and contain any other criminal activities.

”We will continue to deliver on our mandate to ensure energy security for our country with integrity and transparency. We invite any forensic audit of the PMS supply and subsidy management framework of the NNPC,” the company stated.

The Star