Fuel Imports Increase By 78 Million Litres

Fuel Imports Increase By 78 Million Litres

The amount of fuel imported into Nigeria increased to 645.64 million litres in October this year as the total crude oil processed by the c... 23:14

The amount of fuel imported into Nigeria increased to
645.64 million litres in October this year as the total
crude oil processed by the country’s refineries in the
same month was zero, data from the latest financial
and operations report of the Nigerian National
Petroleum Corporation have shown.
An analysis of the petroleum products supply and
distribution as contained in the report showed that the
importation of Premium Motor Spirit or petrol into
Nigeria for October increased by 78.04 million litres
when compared to the 567.6 million litres imported
into the country in September.
Although the increase in volume of imported PMS in
the month under review did not address fuel scarcity
across the country, the NNPC, however, noted that
the products were brought to the country through its
Offshore Processing Agreements.
It also stated that the country’s refineries were
dormant with respect to the processing of crude oil in
October. This was despite the December performance
target that was given the refineries by the Group
Managing Director, NNPC, Dr. Ibe Kachikwu.
The NNPC noted that the supply of white products,
which include petrol and dual purpose kerosene into
Nigeria in October 2015 increased to 852.1 million, as
against 763 million litres that were supplied in the
preceding month.
The report said, “In October 2015, 852.1 million litres
of white products were supplied into the country
through the OPA arrangements compared with a
volume of 763.90 million litres achieved in the prior
month of September 2015.
“DPK receipt in October 2015 was 206.46 million
litres compared with 196.3 million litres
imported in the prior month of September.
Similarly, the PMS supply in October 2015 was
645.64 million litres compared to September 2015
supply of 567.6 million litres.”
On refineries’ operations, the NNPC said, “Total crude
processed by the three refineries in the month of
October 2015 was zero. However, 92,332 metric
tonnes of unfinished product was processed which
translates to a combined yield efficiency of 78.93 per
cent.”
The three refineries include Kaduna Refining and
Petrochemical Company, Port Harcourt Refining
Company and Warri Refining and Petrochemical
Company.
Outlining measures to be taken to ensure that
petroleum products were refined in Nigeria, an
industry expert, Mr. Dibu Aderibigbe, stated that the
government should support the idea of modular
refineries.
He noted that individuals and private organisations
should be given approvals to refine specific amount of
crude oil in order to complement the volume of
refined products that were produced by the country’s
refineries.
Aderibigbe, who is the National Treasurer,
Independent Petroleum Marketers Association of
Nigeria, said, “For local refineries to be developed,
countries, organisations or individuals can begin to
set up modular refineries where about 5,000 barrels
of crude or less (or better still, more than that amount)
could be refined.
“This will create jobs, have a lot of positive impact on
the economy and will save our foreign exchange.
Instead of going to import refined products, we will
start producing these products locally and may export
some to West African countries. But we cannot do
that as long as there is subsidy policy that is not
working.”
Aderibigbe also stated that the introduction of
modular refineries would provide room for compet!
tion, adding that this would ensure price stability and
create an opportunity for the Federal Government to
stop subsidising petroleum products.
He said, “The business would then be run by the
forces of demand and supply. When you have a lot of
producers in the market, you cannot just jerk up your
price. There are fundamental factors that determine
price. One is the price of crude oil, the cost of
transportation, the refinery cost, marketing cost and
other issues.”
The President, Nigeria Association of Energy
Economics, Prof. Adeola Adenikinju, told our
correspondent that it was in the country’s best
interest for the government to revamp the refineries.
He said, “Our refineries have been performing poorly
for too long and I think this is the time to get them up
and running, because it is in the interest of Nigeria to
have the facilities functional now that there is paucity
of funds, instead of paying billions as subsidy
claims.”
The experts earlier called for the removal and
complete halt in the payment of petrol subsidy to oil
marketers by the Federal Government.
Adenikinju noted that since the price of crude oil had
fallen to as low as $40 per barrel, it was the best time
for government to remove subsidy.
The fall in price has provided government the best
opportunity to remove the subsidy, he said.
The payment of subsidy by the government had been
a contentious issue as stakeholders in the oil and gas
sector on several occasions had called on the Federal
Government to discontinue the practice, particularly
when the country’s revenue was badly hit by the fall
in crude oil prices.
However, according to Kachikwu, subsidy payment to
oil marketers had continued as a result of President
Muhammadu Buhari’s magnanimity.