NNPC Sends Message to FG on Petrol Imports as Landing Costs Increases to New High
- The Nigerian National Petroleum Company Limited (NNPC) has asked for a refund of N4.71 trillion used for petrol imports
- The amount is listed as an exchange differential on PMS and other joint venture taxes on PMS imports
- The development comes amid claims by petroleum marketers that the landing cost of petrol has exceeded N1,000 per litre
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC) has demanded that the Nigerian government refund about N4.71 trillion to settle outstanding debt in petrol imports.
The claim was reportedly listed as an Exchange rate differential on PMS and other joint venture taxes on petrol products imported by the national oil company between August 2023 and June 2024.
Source: Twitter
FG reportedly still pays a subsidy
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this at the Federation Accounts Allocation Committee meeting on Thursday, August 8, 2024.
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The exchange differentials refer to the income accrued to banks or government agencies from the difference in value between two currencies at different times via FX sale and purchase prices.
According to reports, this development also means that the government will support fuel imports by covering the difference between the projected FX rate and the actual expenses incurred by the NNPC for importing petroleum products.
NNPC is currently Nigeria's sole importer of PMS and other petroleum products.
Experts say that the difference in cost contradicts the government’s claim on subsidy removal,
Marketers lament petrol scarcity
The revelation also comes as marketers still face challenges securing adequate petrol supplies.
Legit.ng reported that the NNPC’s spokesman, Olufemi Soneye, said there are no supply issues as the company has ample supply.
He said there could be distribution challenges, which is why there is continued petrol scarcity in Nigeria.
Reports say a proposed economic stabilisation document noted in June that the government planned to spend about N5.4 trillion on fuel subsidies.
Oil marketers also said that petrol landing costs have hit N1,117 per litre, leading to a monthly subsidy increase of N707 billion.
Filling stations adjust petrol prices
Legit.ng earlier reported that the endless petrol queues at filling stations across the country may clear this week as PMS loading resumes at depots in Lagos.
On Saturday, August 3, 2024, depot owners refused to open for business due to an ongoing hunger protest that began on Thursday, August 1, 2024.
Truck drivers and owners were also scared of impending attacks while transporting petrol.
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Source: Legit.ng
