The Nigerian National Petroleum Company (NNPC) Ltd has stated that Nigerians will not have to queue for petrol in December as they have done for most of the year, especially between February and April.
This was disclosed in a statement by Mr. Umar Ajia, the chief financial officer of NNPC Ltd, in Abuja on Monday, during a briefing with the ad hoc committee of the House of Representatives on Fuel Subsidy regime in Nigeria, according to NAN.
He stated that the Corporation has adopted measures including the extension of Direct Sales Direct Purchase (DSDP) contract by six months, to sustain the supply of PMS throughout the country.
What the NNPC is saying
Mr. Umar Ajia said that the company has put in place adequate measures to prevent petrol scarcity in the country, even after the 2023 general elections.
“We have extended our Direct Sales Direct Purchase (DSDP) contract by six months, to sustain supply of PMS across the country.
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“The DSDP contract, in reality, ended in August and it is a very dangerous period to begin to retender for that because we are facing the winter, these are the difficult “ember months’’ that we normally avoid fuel scarcity.
“You know the scarcity in Nigeria is really associated with the Christmas period so if you now tender, the tendering process will take one or two months.
“So, what the board approved is to extend the contract for six months such that we will have passed the winter and the elections periods, otherwise we could have problems during election,’’ he added.
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The Chairman of the Committee, Rep. Ibrahim Al- Mustapha (APC-Sokoto) noted that there was the need for an upward review of petrol price in Nigeria, in-line with the global price. He noted that petrol was being sold for N536 per litre in Niger Republic, N577 per litre in Mali and N389 per litre in Benin Republic.
He also warned that subsidized Nigerian fuel was being smuggled to west Africa.
“If you have N5 million, you can cross the borders with trucks laden with petrol, and that is the bitter truth; we have porous borders; yes we have customs but I do not know,” he said.
What you should know
Nairametrics had reported in June that the national president, Natural Oil and Gas Suppliers Association, Bennett Korie, via a statement issued stated that it is no longer sustainable for the marketers of the Premium Motor Spirit (PMS), popularly known as petrol, to sell at N165 per litre anywhere in Nigeria. This is because they now buy the product for about N170/litre in some private depots.
He said, “Nigerians would have to adjust to the current reality, as it was no more feasible to dispense petrol at the approved rate of N165/litre in filling stations after purchasing the product for about N170/litre in some private depots.
“You can’t buy petrol at a high price and sell this low. Crude oil is about $130/barrel, the cost of fuel, if you hear it, you will run away; but you are selling at N165/litre. So definitely you don’t expect money to remain for government to run other activities when it spends heavily on subsidy.”