The conflicting fuel consumption figures released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have sparked confusion.
Initially, the agency had stated that 52million litres were consumed daily by Nigerians.
However, its Chief Executive Officer, Farouk Ahmed later said 46.3million litres were consumed daily.
According to stakeholders in the sector, both NMDPRA and the Nigerian National Petroleum Company Limited (NNPCL) are to account for the 6million litres per day difference since the phasing out of fuel subsidy by the Federal Government.
The NNPCL is the sole supplier of petrol in the country till July 2023.
According to industry watchers, it is possible the company did not supply 52 million litres per day or it supplied the 52ml/day, but over six million litres was not consumed in Nigeria.
The Nigeria Customs Service Comptroller General, Adewale Adeniyi last week disclosed that smuggling of petrol out of the country has not stopped, despite the removal of subsidy.
He said: “We still have some incidences in some border stations. The rate has reduced and we are going to be watching the situation very closely. The situation of fuel is very sensitive and we cannot afford to allow the saboteurs take over our economy.”
The NNPCL Chief Communications Officer, Garba Deen Muhammad, could not be reached for comments. NNPCL is still 100% owned by the Federal Government, despite its commercialisation.
Marketers under different umbrellas are still protesting that the company spent their outstanding ticket funds to import the fuel and asked them to pay the new rates to load the product.
According to a document titled: “Petroleum Product Stock and Days Sufficiency Data,” which The Nation obtained yesterday in Abuja, the stock data for 14th July, 2023, said: “National average daily evacuation/truck-out figures are as follows: PMS: 52,000,000ltrs/day (based on the post subsidy adjustment.”
The the document noted the total available stock of 1,794,244,183 litres can last 32.9 days.
The post subsidy adjustment was 28.84% reduction in consumption from the approximately 67million/litres per day figure when there was subsidy.
Another document, dated 28th May, 2023, which The Nation also obtained yesterday, indicated that the NMDPRA pegged the daily PMS consumption at an average of 64,964,400 litres per. On that day, the available stock was 1,672,926,515 litres, which was would last 24.40 days.
On 28th May, 2023, the NMDPRA said: “Note: National Daily evacuation/Truck – Out figures are as follows: PMS: 64,964,400 litres per day (adjusted to approved 20232 MTEF.”
The 14th July, 2023 data was followed by NMDPRA announcement that the daily consumption has reduced to about 46.38million litres per day.
Farouk said at a stakeholders workshop in Lagos that: “In January, it was 62million per litre; February, 62 million per litre; March, 71.4million per litre; April, 67.7million per litre; May 66.6million per litre; June, 49.5 million per litre and July, 46.3 million per litre.”
However, NMDPRA Corporate Communications General Manager, Apollo Kimchi, said the figure given by Ahmed was an average consumption figure, which is not constant.
He said: “ACE gave an average consumption figure. However, it differs day to day.”
Emadeb Energy takes delivery of 27m litres of petrol at $17m
Following the liberalisation of licences to import petrol, Emadeb Energy Services, a depot owner and one of the marketers licensed to import fuel, yesterday announced that it has taken delivery of 27 million litres at its Ijegun Satellite Depot, Lagos.
The firm’s Chief Executive Officer, Mr. Debo Olujimi, said this will boost product distribution in the country.
He said that the 27 million litre cargo cost over $17 million due to foreign exchange rate at the international market.
Olujimi, however, noted that the better option is to encourage local refining of the product.
He said: “Now that private companies have been granted licences to import petrol, this is actually the way forward. It is a known fact that the increase in price of petrol has been a huge pressure on Nigerians which we all understand. Having local refineries is the only way forward because foreign exchange determines the price of petrol,” he said.
He commended President Tinubu for deregulating the downstream sector, adding that the company looks forward to a sustainable development in oil and gas sector. The Managing Director, Rainoil Limited, Mr Gabriel Ogbechie, lauded Emadeb for importing the product after the subsidy removal. He said that the company had set the pace in importation process.
“Deregulation is workable and way to go. There are so many challenges in the downstream sector including forex instability, which moved to N835 to dollar. There are huge fluctuations in the system but deregulation is the best way to go. The process will be competitive under deregulation, if the prices drop, petrol will also dropped,” he said.
Ogbechie however agreed that floating the exchange rate was right thing to do because the huge disparity between official rate and black market rates was not sustainable. He urged government to provide liquidity to the market to ease importation, warning that if government does not provide liquidity, the fluctuation will continue.
In similar vein, the Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Olawale Afolabi, said that deregulation had helped in opening the market. He urged investors to invest in refining, so that Nigeria can have local refineries.
The National Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, commended the firm for commencing importation under post subsidy removal regime.
“We laud the courage, in spite of all the prevailing challenges. The era of monopoly of product has done. The process will be more transparent than that of the NNPCL, where money is paid and products are not allocated for five months. I urge government to quicken the palliative for Nigerians, to have a relief. Government should use money saved from subsidy and forex to do something reasonable for Nigerians. Price will be competitive because the cheapest rate as at yesterday was N565,” he added.
IPMAN: Tinubu should fix refineries
The Rivers State wing of the Independent Petroleum Marketers Association of Nigeria (IPMAN) urged President Tinubu to fix the four refineries.
Its Chairman Joseph Obele, said bringing back the refineries would reduce the price of petrol and ameliorate the suffering of the masses.
He said: “We saw a new buying rate on the NNPC portal. The previous buying rate was N487.7 per litre. The new buying rate going forward is N567.7 per litre. The new selling rate is N600, N610, N620 and above.
“It is going to bring hardship to the citizens and marketers will need to source for additional trading capital in order to remain in the business. The Nigerian economy is going and the inflation index will further rise.
“Our solution is fixing Nigeria’s refineries. Mr. President should declare state of emergency on Nigeria refineries”
Fuel sales reduced in Southeast
The Enugu Depot Community of IPMAN said the hike in petrol prices has become a threat to business
Its Chairman, Chinedu Anyaso, said average sales dropped by about 50 per cent from May 30 to date.
Anyaso, whose depot serves Anambra, Ebonyi and Enugu States, warned that the development could lead to the collapse of the downstream sector and loss of jobs.
He said: “Most marketers are finding it difficult to remain in business because increasing cost of operation, payment of workers and meeting bank obligations is becoming difficult.
“We appeal to the Federal Government to save downstream operations from collapsing by working on reduction in pump prices,” he said