Nigerians and neighbouring countries that benefit from smuggling consume 54 million litres of petrol , the Nigerian National Petroleum Corporation has said .
The Group Managing Director of the NNPC, Mele Kyari, said this at an interactive hearing on ‘ Exiting petroleum subsidy: Ensuring self-sufficiency in domestic refining of petroleum products. ”
The event was organised by the Joint Senate Committee on Petroleum Resources ( Upstream and Downstream ) , on Tuesday evening .
Kyari said the corporation did not know the exact litres of petrol being consumed in the country per day.
He , however , said the NNPC had the record of the number of litre being lifted from the various depots every day.
The national oil firm had put the daily consumption of petrol in Nigeria, based on product evacuation record at the depot, at about 54 million litres .
The NNPC boss told the senators the subsidy payment covered every litre evacuated from the depot but that not all the product got to the end user .
He said , “ We don ’t know how much petroleum products we consume daily in this country , but we know how much of the product that is taken out of depot .
“ This year, around 54 million litres of petroleum products are evacuated from the depot daily , but the consumption is somewhere below that .
“ The NNPC has no knowledge of the amount of products that are transported through Nigeria’ s borders to neighbouring countries.
“ It is impossible to know ; nobody declares it, and therefore as it crosses , it goes .”
According to him , the only way to stop smuggling is to walk away from subsidy.
On pipeline vandalism and oil theft , Kyari said this year alone, the country had lost about $48m worth of crude oil due to pipeline vandalism.
He , however, said the number is lower when compared to the past.
In 2018 and 2019, he put the losses at $825m and $725 m respectively .
He said the NNPC deliberately shut down its three refineries for two reasons.
He said , “ One is business decision. They are in such a condition that we can only extract 70 to 80 per cent of the value of crude . It is needless to operate it when you know you will lose 20 per cent of the value.
“ Second is that we cannot even guarantee crude oil supply to these lines .
“ From Excravos to Warri and then to Kaduna; Bonny to Okrika, the pipelines are very old. Some are 30 to 40 years old and have not been replaced. ”
Kyari added, “ We have not done proper maintenance in the last 30 years, and the cumulative effect is that even when you start it today, it cannot be run optimally .
“ To replace pipeline from Excravos to Kaduna, you need at least $2bn and we don ’t have that kind of money .”
He said the best two refineries , located in Warri and Port Harcourt, were only producing a little above 25 per cent of their capacity when they were running in 2018 .
According to him , N64 bn was spent to resuscitate Kaduna refinery without success.
Kyari said the NNPC was working with partners to fix the refineries.
The Chairman , Senate Joint Committee on Petroleum Resources ( Upstream and Downstream) Senator Sabo Mohammed , described as “ very disheartening and worrisome ” the way and manner subsidy expenditures was soaring.
He said petrol subsidy soared to over 210 per cent within two months from an average cost of N774 m per day in March 2018 to N2. 4bn per day in May 2018 .
He said the NNPC report showed that the organisation, as a sole importer of petroleum products , claimed N843. 12bn and over N 1tn as under recovery in 2018 and 2019 respectively.
He said this was against the average of about N 511bn per year in 10 years within the subsidy regime .

source: https://punchng.com/fuel-consumption-smuggling-gulp-54-million-litres-per-day-nnpc/

Under Jonathan total daily fuel consumption was 26 million litres a day but under Buhari smuggling alone is 54 million litres a day ..this shows how incompetent Buhari admin is

Following Timbers

Do we blame the smugglers, or do we blame buhari's incompetence?
After spending N64 billion on kaduna refinery to no effect, kyari now needs $2billion to replace escravos to kaduna pipeline?
NNPC keep spending more money without making any profit whatsoever.
When will NNPC be scrapped?

SarkinYarki:
Under Jonathan total daily fuel consumption was 26 million litres a day but under Buhari smuggling alone is 54 million litres a day ..this shows how incompetent Buhari admin is

Actually, fuel consumption was much higher than that under GEJ. NNPC had the same issues measuring fuel consumption then as it does now.

All in all due to subsidy.

Also, GEJ left office 5 years ago, the population has grown, and people still buy cars, generators. Fuel consumption ought to go up.

Poloyanabo2:
Do we blame the smugglers, or do we blame buhari's incompetence?
After spending N64 billion on kaduna refinery to no effect, kyari now needs $2billion to replace escravos to kaduna pipeline?
NNPC keep spending more money without making any profit whatsoever.
When will NNPC be scrapped?

Here is the reason why smuggling happens.

In Nigeria, fuel costs N123.5-N125 per liter, with a subsidy in place. In Benin republic, fuel costs N336 per liter. In Ghana, its N301 per liter, in Niger, it is N350, and in Ivoiry Coast it is N385 per liter. Cameroon sells fuel at N419 per liter. I could go on..

So, it is far easier for your local marketer to smuggle fuel across the borders, and make a big profit selling it there.

That's why subsidy has to go, and marketers have to be the ones controlling the price of the fuel they sell. NNPC inclusive.

Also, NNPC is spending billions on refinereis without result because they are a government agency. As a result, they have no incentive to make profits, no matter how bad they are doing, they can just request for more money. Making NNPC private would end all that, they would be forced to work for their money, and their refinereis would be working in days.

The truth is, the government introducing price controls and subsidies is the reason why we have issues with refieries, and issues with smuggling. But because removing suibsidy and allowing the market determine the price has always been very unpopular (the GEJ admin tried it in 2012, and faced severe protests, Buhari only was able to get away with a partial removal because everyone could see at the time that the treasury was almost empty due to very low oil prices then)...government keeps a subsidy in place.

You won't allow the government control the prices of what you sell, if you were a businessman. Why are we allowing them control the price of fuel?? Is Cameroon, Benin, etc richer than we are?

The government should stop giving Nigerians problems every time . Government should solve Nigerian problems, I believe this is the essence of voting them into power.

We need solution to Nigerian problems

Most people are other people. Their thoughts are someone else’s opinions, their lives a mimicry, their passions a quotation.


Good morning y'all

❤️

But Sanusi said okonjo iweala was telling lies.
As Nigerians never used that amount of fuel on daily basis.

It's sad that in 2020 other countries are talking about ground breaking achievements in medical biotech research

New energy discoveries

Space research

And new discoveries of archeological finds

But Nigeria is shamelessly showing the whole world her stupidity

Imagine this headline ? Other countries will be sourcing the internet to see which countries are catching up in terms of being a world power but they will see this NONSENSE from Nigeria as usual

Nigeria gives Africa a bad name

Earlier this year before the Covid 19 I was in Kenya and Rwanda and I can tell you Nigeria is far behind these two nations

These are progressive forward thinking nations that want to do away with the western stereotype of Africa being backward and depending on western nations but Nigeria just keep dragging the continent backwards..

Nigeria has nothing to show for in the last two decades save for internet penetration which allowed her citizens to start troubling the world with cyber crime .

The worst part are the disillusioned youths who are a generation of drug addicts, hippies and care free delusional consumers

Nigerian youths don't care about reality, facts , morals or doing the right thing

They just want to eat here and now and fûck away their future.

The irony is they curse the past generation for wasting away their so called birthright, but look at what is going on today ...

The coming generation will have nothing but dust to inherit

Nigeria is doomed .. at this point it may be best this nation divides because at the rate this nation is being bled , the resources of the south would be used to enrich and build a Dubai in the north then after the south is bankrupt trust me the north would agree to a division by then southern Nigeria would be poorer than northern Sudan

This is my fear

please when will buhari leave office

So, what should we Nigerians do about it?.. should we mount roadblocks? Or what do dey need us to do for telling us this?

This is just unbelievable

I'm talked out about Nigeria matter. KingB is just a Dundee United wearing Arsenal Jersey.

SarkinYarki:
Under Jonathan total daily fuel consumption was 26 million litres a day but under Buhari smuggling alone is 54 million litres a day ..this shows how incompetent Buhari admin is

As long as there is no subsidy, it can be 100M litres per day and there won't be any problem! Presently, there is no subsidy, so it means we are supplying our neighbors and some people are making profit.

Ok

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Absolutely nothing to be proud of in this country.



Even ashamed to fly the flag out here.



Very shameful!

The only solution is Sell NNPC that way it would end all these smuggling.



That was one of Atiku's plan.

Oil oil everyday

Came here for FTC

Humbly walked out to check another thread

Una no dey sleep ni

Still in smaller proportion

According to him , the only way to stop smuggling is to walk away from subsidy.
On pipeline vandalism and oil theft , Kyari said this year alone, the country had lost about $48m worth of crude oil due to pipeline vandalism

How long will they continue to talk about the same issues, with remedying them!

[b][/b]They should just sell this country because nothing seems working. The news we read everyday is not encouraging at all.


My one cent.

Morning