Business
NNPC May Spend N201bn To Clean Imported Adulterated Fuel
In order to address the fuel scarcity in the country, the Nigerian National Petroleum Company Ltd. may spend N201 billion to import clean Premium Motor Spirit (petrol).
www.tracknews.ng recalls that the NNPC had claimed that 170.25 million litres of adulterated products were allegedly imported into the country by four oil suppliers namely MRS; Emadeb/Hyde/AY Maikifi/Brittania-U Consortium; Oando, and Duke Oil.
According to the NNPC Group Managing Director, Mele Kyari, the suppliers imported a limited quantity of PMS with methanol quantities above Nigeria’s specification, which was discovered in the supply chain.
However, some of the oil suppliers have denied the statement made by the NNPC boss, saying that Duke Oil, a trading arm of the NNPC, imported a cargo of 49.56 million litres PMS in Apapa between January 24 and 30.
On Wednesday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive Officer, Farouk Ahmed, had said for every 200 litres of the adulterated product, 800 litres of clean petrol would be required for the blending to be done.
An analysis of the problem shows that for the re-blending of the adulterated petrol, the two cargoes, containing a total of 170.25 million adulterated petrol, would require 681 million litres of clean product worth N201 billion (based on a landing cost of N295 per litre).
According to The Punch, N201 billion was a conservative estimate, as there were other costs that would be associated with the re-blending.