by The Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, says about N3.4 trillion was required as fuel subsidy for the 66.7 million litre of premium motor spirit (PMS) daily consumption per annum as against the N4 trillion budgeted.
Mr Kyari disclosed this at the ongoing investigative hearing into the subsidy regime from 2013 to 2021, by the House of Representatives Ad-hoc Committee on petroleum subsidy.
Kyari, who was represented by the company’s Chief Financial Officer, Mr. Umar Ajia, also informed the lawmakers of the company’s resolve to extend the Direct Sales Direct Purchase (DSDP) contract which was billed to end in August, 2022, in order to avert fuel scarcity in December and during the 2023 general elections.
He said they have about 1.6 billion litres incoming, land and marine, which is what is the minimum level the NNPC have to maintain, especially with the approach of winter.
“When you look at PMS outlook, we want be closing each and every month with a two billion closing stock. “That is the only way you can sustain petroleum so that the marketer does not see some slack and take advantage by begin to hoard product that can create artificial scarcity which can lead to queue.
“The reality today is that if one were to take statistic of the number of vehicles in Nigeria, how many Keke Napep do we have? How many pumping machine, how many pumping machines do we have?”
Responding to questions on the huge allocation of PMS to states near border towns, the NNPC official lamented that previous efforts made by PPPRA to install monitoring facilities with a view to forestall illegal transportation of PMS across illegal border failed due to the nation’s porous borders.
Source: radionigeria
