NNPC Imports N201b Fuel

Petroleum Products Pricing Regulatory Agency (PPPRA) Executive Secretary, Oluwole Oluleye, disclosed these on Thursday in Lagos at a seminar organised by the National Association of Energy Correspondents (NAEC).

He said President Olusegun Obasanjo has proposed to the National Assembly a N100 billion Petroleum Support Fund (PSF) for next year, “out of which the Federal Government would contribute N50 billion, while states and local governments would contribute N50 million.”

The PSF was created to offset losses the NNPC and other marketers incur in the volatile price of crude oil on the international market.

Domestic consumption of Premium Motor Spirit (PMS) or petrol is 30 million litres per day (pd), but combined capacity of the four refineries is 18 million litres pd, leaving a balance of 12 million for import.

Oluleye said importation of products, especially petrol, would continue until refining capacity improves through investment by the private sector.

The NNPC imported N19.09 billion worth of products in January, and N8.28 billion in February.

In March, the figure was N12.74 billion; April (N30.27 billion); May (N29.05 billion); June (N29.83 billion); July (N26.55 billion); August (N25.89 billion); September (N12.33 billion); and October (N6.99 billion).

Oluleye lamented that “the greatest challenge facing the PPPRA is the non-release of the N150 billion budgeted for the scheme into the PSF account with the Central Bank of Nigeria (CBN).

“This development continues to pose a serious challenge to its implementation and the deregulation policy, as marketers� confidence is being eroded. There is also the challenge of sustaining products availability, which is becoming difficult, with threats of withdrawal by marketers due to non-reimbursement under the PSF scheme.”