25 December 2017, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation, NNPC, Sunday, disclosed that the Landing Cost of PMS is N171 per litre, meaning that at N145 per litre, the Federal Government is currently paying a subsidy of N26 on a litre of the commodity.
Briefing journalists in Abuja, Group Managing Director of the NNPC, Mr. Maikanti Baru, explained that Cost, Insurance and Freight price of PMS was $620 per metric tonne, adding that at N305 to a dollar, the landing cost translates to N171 per litre.
He, however, disclosed that despite the higher landing cost, there is no plan to increase the price of the commodity, adding that the N145 per litre price was guaranteed.
He also noted that despite the actual landing cost, marketers are being supplied the product at N133.28, giving them ample opportunity to make a profit.
Baru added that the NNPC would like to see a thriving and vibrant private sector that would participate actively in product importation going forward.
In addition to the importation of the product, Baru disclosed that the Port Harcourt and Kaduna refineries are currently contributing about one million litres per day and 2.8 million litres per day of PMS to the country’s fuel supply respectively, adding that since the fuel crisis began, both refineries had contributed a total of about 61 million litres.
He noted that the Port Harcourt and Kaduna Refineries had been restreamed and currently contributing significant volumes into the supply mix, while he added that products are being released from strategic reserves to support normalisation.
He also declared that security agencies are collaborating to ensure cross-border smuggling of petroleum products is curtailed.
He said, “We are deeply concerned and sympathise with the general public for the current uncomfortable situations experienced by citizens, especially in major cities of the country where Nigerians have to cue for hours to get fuel for their vehicles to travel for the Christmas and New Year.
“The general public is being reassured that there is the robust supply of petroleum products to ensure availability throughout the festive period and beyond. Nigerians are accordingly advised to avoid panic buying and patronizing sellers of petrol in jerry cans. This would assist in bringing back the situation to normalcy.
“l appreciate the support of all stakeholders in the supply and distribution efforts especially the Security Agencies, Regulatory Agencies, Transporters: Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD), Oil Marketing Companies (OMC) and the various Unions.”