Embarrassing! NNPC Still Unsure Of Actual PMS Consumption
Even after basing its daily subsidy payment of over N774 billion on petrol importation on the local consumption of about 65 million litres, the Nigerian National Petroleum Corporation (NNPC), sole importer of petrol, said on Wednesday, it does not know the actual fuel consumption level.
It has now put machinery in motion to determine the actual volume of the commodity purchased by Nigerians on a daily basis, albeit at the instance of the National Executive Council.
NNPC’s Chief Operating Officer, Downstream, Mr. Henry Obih, stated this at the ongoing Nigerian Oil and Gas Conference and Exhibition in Abuja.
Actual fuel consumption had been a controversial issues over the last couple of months, as the consumption figure is what determines the amount the NNPC deducts from its revenue before making remittances to the Federation Account, with the return of fuel subsidy, now known as under-recovery.
NNPC had put Nigeria’s fuel consumption at 65 million, blaming the sharp rise from about 35 million barrels per day, on rising cases of smuggling of the commodity as evidenced in the proliferation of petrol stations along the country’s borders.
However, governors of the 36 states had faulted the 65 million litres per day consumption figures, stating that it was a ploy by the NNPC to cut down on its remittances to the Federation.
