NNPC Spends $1.8bn on Fuel Import Quarterly – Rabiu 

73 views0

NNPC Spends $1.8bn on Fuel Import Quarterly – Rabiu 

By Correspondent

 The Nigeria National Petroleum Corporation (NNPC) said on Wednesday that it spends $1.8 billion every quarter on fuel import. The Group Executive Director Upstream of NNPC, Mr Bello Rabiu, stated this while addressing State House Correspondents. According to Rabiu, the organisation spends between $16 million and $20 million on imports daily, amounting to a total of about $1.8 billion per quarter. He was reacting to the inability of the nation’s refineries to provide the local needs of consumers, stating that the organisation had to rely on importation to satisfy local consumption. He said that the import bill depended on both the volume and the price, adding that a cargo of product, about 40 million litres, presently costs about $13 million to $14 million dollars. He also mentioned that the country produced about 2.2 million barrels of crude daily but only about one million belonged to NNPC through 60 percent equity in the Joint Venture. ”˜The average equity crude for sale is not up to one million barrels which means that the total amount of money we can get is about $40 million dollars’, he said.According to him, if half of the amount is used to import products, it leaves a lot of implications for the economy. He said that the organisation also spent money to produce which reduced the accruals. ”˜We spend about $30 million to produce. We try to maximize what is available,’ he said, adding that over 90 percent of other imports were financed by the oil sector. ”˜That is why we said we need to diversify, export more and import less’, he noted. He mentioned that more countries are now producing oil and that some producers such as Libya that came out of crisis had joined in the crude market. He said it was rather unfortunate that most of the oil producing countries were import-dependent. Mr Rabiu explained that the nation could not get more than 15 million to 20 million litres of PMS out of the local refineries but could produce enough kerosene and DPK (diesel) if they operated at 90 percent installation. The Group Executive Director, Refinery, Mr Anibor Kragha, said the operators were focused on increasing fuel supply to markets outside Lagos and Abuja. On the pipelines, he said that most of them were on pressure testing to ensure safety before pumping through them. He said that the Enugu depot would take some time to be revived but added that the Aba depot was ready to service the entire East. He complained that between Aba and Enugu, a lot of pipelines had been removed and taken away by vandals and needed to be replaced. ”˜We just have to work on that one and we can pipe from Aba to Enugu then to Makurdi and Yola’.

Discover more from NewsBreakers

Subscribe to get the latest posts sent to your email.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0
Previous
Next

Comments are closed.