Daily PMS consumption stands at 80 million litres, says NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) says consumption of Premium Motor Spirit (PMS), popularly called petrol, has risen to about 80 million litres daily.

According to a recent data obtained by the oil firm, a total of 558.83 million litres of petrol was evacuated during the period, translating to an average daily consumption of 79.83 million litres.

The data also showed a subsidy of about N202/litre which implies that the oil company would be spending an estimated N483.8bn to subsidise the commodity monthly.

In February, Mele Kyari, Group Chief Executive of NNPCL, said 66 million litres of petrol was pumped daily into the market.

He added that the company was spending about N202 on every litre of PMS in Nigeria.

“Today, by law and the provisions of the Appropriation Act, there is a subsidy on the supply of petroleum products, particularly PMS imports into our country. In current data terms, three days ago, the landing cost was around N315/litre,” he said.

“Our customers are here; we are transferring to each of them at N113/litre. That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month.”

Although NNPCL has been the sole importer of petrol since other marketers stopped imports due to difficult foreign exchange access for PMS purchase, the oil firm has complained about the huge burden of PMS subsidy that has been a drain on the cash-flow of the oil firm.

The GCEO said the continuous funding of petrol subsidy by NNPCL had been ongoing without refunds from the Federal Ministry of Finance, Budget and National Planning, despite the fact that subsidy had been budgeted for in the appropriation act.

“But there is a budget provision for it (subsidy). Our country has decided to do this. So, we are happy to deliver this, but it is also a drain on our cash flow, and I must emphasise this,” Kyari said.

“For as we continue to support this, you will agree with me that it will be extremely challenging for us to continue to fund this from the cash flow of the company when you do not get refunds from the Ministry of Finance.”