Abuja — The downstream subsidiary of the Nigerian National Petroleum Corporation, NNPC, the Petroleum Products Marketing Company, PPMC, earned N2.648 trillion from the sale of petroleum products in 2018.
According to data obtained from the NNPC’s Monthly Financial and Operations Report for December 2018, this represented an improvement of 36.71 percent over the N1.937 trillion earned from the sale of the commodities in 2017.
Specifically, the report noted that white products sale, comprising Premium Motor Spirit (PMS), Automotive Gasoline Oil (AGO) and Dual Purpose Kerosene (DPK), accounted for 97.13 per cent of total revenue from petroleum products sale with N2.572 trillion, while earnings from special products sale stood at N76.127 billion, comprising Low Pour Fuel Oil, LPFO and other special products.
This was an improvement from the N1.864 trillion and N72.786 billion white petroleum products and special petroleum products sales respectively, in 2017.
Giving a breakdown of the earnings, the report explained that PMS sales stood at N2.309 trillion, AGO N182.344 billion, while DPK sales stood at N79.879 billion.
On the other hand, in the special products category, LPFO sale stood at N27.769 billion, while other special products sale stood at N48.36 billion.
In volume terms, the report noted that the PPMC sold 23.801 litres of petroleum products in 2018, rising by 49.93 percent compared to 15.875 billion litres sold in 2017.
In particular, the report explained white products sales accounted for 84.82 percent of total products sales, with 20.189 billion litres, compared with 15.259 billion litres in 2017; while special products sale stood at 3.612 litres, compared with 616.39 million litres recorded in 2017.
The report further stated that in the white products category, PMS, AGO and DPK sales stood at 18.698 billion litres, 1.288 billion litres and 477.768 million litres respectively; while under the special products category, LPFO sales stood at 3.293 billion, while other unlisted special products sales stood at 319.131 million.
In addition, the report noted that in December 2018, the NNPC allocated about 92.46 percent of domestic crude oil to Direct Sale-Direct Purchase (DSDP) arrangement to ensure petroleum products availability, adding that so far, the arrangement had guaranteed products stability and created room for savings.
The report also highlighted that the Group Managing Director of the Nigerian National Petroleum Corporation, Mr. Maikanti Baru, had charged the corporation’s Downstream Company, NNPC Retail, to increase its current 14 percent market share to 30 percent by 2020.
It added that “The NNPC undertook the repairs of a ruptured gas pipeline which supplies gas to most thermal electricity generating plants in the country. This has boost power generation significantly.
“Products theft and vandalism have continued to destroy value and put NNPC at a disadvantaged competitive position. A total of 2,224 vandalized points have been recorded between December 2017 and December 2018.”