NNPC May Spend N201 Billion To Clean Up Dirty Fuel

Nigerian Presidency promised to tackle scarcity and restore normalcy in Abuja and two other major cities following gradual return of queues and black market at filling stations
February 11, 2022
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NNPCL Denies Inflating Fuel Subsidy Payments
NNPCL GMD Mele Kyari

To clean up the 170.25 million litres of methanol-laden premium motor spirit (PMS) imported into the country, the Nigerian National Petroleum Company (NNPC) may need as much as N201 billion, an equivalent of some $480.8 million in conservative exchange rate.

The Chief Executive Officer of  the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),  Mr Farouk Ahmed, while visiting some Lagos depots after a meeting with industry stakeholders on Wednesday, had hinted that ”all off-spec material” would be re-blended to acceptable quality, certified and re-certified  before resupplying them.

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“All the off-spec material (product) will re-blended to very good quality, and it will be certified and re-certified before it goes into the market,’ Ahmed said.

Mr. Ahmed’s statement had  followed Tuesday’s disclosure by the NMDPRA that every 200 litres of dirty or adulterated  fuel would need 800 litres of blending with good petrol  to bring it up to the acceptable standard.

”The component that was in excess was methanol; what we agreed was that for every 200 litres of the affected volume, we need about 800 litres to blend,”  Ahmed, said on Wednesday  during  his tour of some depots in Lagos.”

Regulators had revealed that a limited quantity of PMS with methanol quantities above Nigeria’s specification was discovered in the supply chain. This has led to closure of several fuel outlets suspected to have acquired the  bad product, a situation that has led to a nationwide fuel supply crisis.

NNPC Group Managing Director, Mele Kyari, said  the regulator’s quality inspector had on Wednesday January 20, 2022, reported presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

According to Kyari, methanol  was found in four PMS cargoes imported through NNPC’s Direct Sale Direct Purchase (DSDP) suppliers. The NNPC  named the suppliers as  MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando and Duke Oil.Both MRS and Oando have in separate statements  made avaialble to Prime Business Africa denied culpability.

While MRS says the responsibility for importing petrol was solely that of thee NNPC through its ‘trading arm’ Duke Oil, Oando, in its defence, said it it would assist the NNPC trace the root cause of the adulteration which probably occurred after supply was effected.

NNPC’s  DSDP  programme allows a few  accredited  foreign refiners, trading companies and indigenous companies to receive supply of Nigerian crude and  deliver  equal value of petrol and other refined products to the NNPC.

The dirty fuel controversy and  subsequent closure of  marketing outlets  have triggered scarcity and   socio-economic  hardship across the country.

Long queues have returned  at petrol stations in Abuja Federal Capital Territory , Lagos  and urban centres across states in Nigeria, just as Prime Business Africa reports that desperate  motorists in Abuja and Lagos are seen  resorting to black market for supplies.

 

 

 

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