NNPC: FG Pays $600m Per Month "on Importation of Petrol
Thu Apr 14, 2016 11:04:am Business
4.3K By sosa hills
As he apologised to Nigerians over the lingering fuel crisis, Group Executive Director, Upstream, of the Nigerian National Petroleum Corporation (NNPC), Bello Rabiu, says the Federal Government needs $600million monthly to meet national demand.
He said: "So, this amount is required to meet the country's fuel requirement for one quarter: Every month, we need $600 million to import fuel.
So, we need $1.8 billion to meet the country's requirement for a quarter."
Bello told journalists in Abuja that the NNPC had moved to resolve the situation by deploying more tankers (1,500) daily to meet nationwide requirement.
He said: "Let us start by tendering our apology and telling the people that we are really doing the right thing. We have been working very hard. It is supply issues that have been causing this problem but we are doing everything possible to end it. What we are doing now is to ensure that we get necessary supplies into the country through imports as well as through our refineries."
Bello explained that "because pipelines are not working, we are relying on about 100 per cent trucking to the hinterlands. The plan is that going forward, from yesterday, we want to ensure that we give what is more than required in this country.
"The total requirement for the whole country is about 1,300 trucks. But our plan is to make at least 1,500 trucks available everyday.
According to him, "As we speak today, a cargo of products of about 49 million liters will cost us about $13 to $14 million and we need about 45 to 50 million liters to satisfy the country fully depending on the time.
"So, if you assume about 15 million dollars per day to actually import what the country requires which can easily go up to 20million depending on the price, it means you need 20million times 90(days) for one quarter.
"So, 90 times 20 million is 1.8 billion dollars to actually import the total requirement of the country in a quarter," he said. "
We want to make sure that we sustain the market in a very short time. You can see that Lagos is almost cleared. Abuja is getting better. Other places will follow," he said.
Rabiu also noted that the Port Harcourt Refinery has started delivering about five million liters a day enough for Port Harcourt and Bayelsa areas while Warri was close to adding another two million liters.
He said 12 cargoes of fuel ordered by the corporation online were expected to be on Nigerian waters by next week to meet the demand and supply balance.
NNPC he said is also working to ensure that private importers who have approvals to import get foreign exchange cover to bring in the cargoes on time.
He said: "So, this amount is required to meet the country's fuel requirement for one quarter: Every month, we need $600 million to import fuel.
So, we need $1.8 billion to meet the country's requirement for a quarter."
Bello told journalists in Abuja that the NNPC had moved to resolve the situation by deploying more tankers (1,500) daily to meet nationwide requirement.
He said: "Let us start by tendering our apology and telling the people that we are really doing the right thing. We have been working very hard. It is supply issues that have been causing this problem but we are doing everything possible to end it. What we are doing now is to ensure that we get necessary supplies into the country through imports as well as through our refineries."
Bello explained that "because pipelines are not working, we are relying on about 100 per cent trucking to the hinterlands. The plan is that going forward, from yesterday, we want to ensure that we give what is more than required in this country.
"The total requirement for the whole country is about 1,300 trucks. But our plan is to make at least 1,500 trucks available everyday.
According to him, "As we speak today, a cargo of products of about 49 million liters will cost us about $13 to $14 million and we need about 45 to 50 million liters to satisfy the country fully depending on the time.
"So, if you assume about 15 million dollars per day to actually import what the country requires which can easily go up to 20million depending on the price, it means you need 20million times 90(days) for one quarter.
"So, 90 times 20 million is 1.8 billion dollars to actually import the total requirement of the country in a quarter," he said. "
We want to make sure that we sustain the market in a very short time. You can see that Lagos is almost cleared. Abuja is getting better. Other places will follow," he said.
Rabiu also noted that the Port Harcourt Refinery has started delivering about five million liters a day enough for Port Harcourt and Bayelsa areas while Warri was close to adding another two million liters.
He said 12 cargoes of fuel ordered by the corporation online were expected to be on Nigerian waters by next week to meet the demand and supply balance.
NNPC he said is also working to ensure that private importers who have approvals to import get foreign exchange cover to bring in the cargoes on time.
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