Despite claims in some quarters that the Nigerian National Petroleum Corporation (NNPC) was incurring huge deficit by the price of Premium Motor Spirit (PMS) otherwise called petrol in the country throughout last year, the Corporation has announced that it generated the sum of ₦2.639 trillion from the sale of 21.514 billion litres of petrol for the period of December 2018 to December 2019.
This is contained in the December 2019 edition of NNPC’s Monthly Financial and Operations Report (MFOR), released in Abuja yesterday.
Recall that the NNPC was the sole importer of petrol throughout last year due to government’s refusal to deregulate the market for products coupled with the rise in the global price of crude oil during the year.
However, the MFOR revealed that the downstream subsidiary of NNPC, the Petroleum Products Marketing Company (PPMC), sales of white products for the period December 2018 to December 2019 stood at 21.861billion litres, with PMS accounting for 21.514 billion litres or 98.41 per cent.
In value terms, the report said revenues generated from the sales of white products for the period December 2018 to December 2019 stood at ₦2.705 trillion, with PMS contributing about 97.56 per cent of the sales with a value of ₦2.639 trillion.
But in terms of its activities for the months under review, the NNPC’s downstream entity in charge of bulk supply and distribution of petroleum products, said it distributed and sold 2.775 billion litres of white products in December 2019 compared with 0.841billion litres in November same year.
This comprised 2.762 billion litres of PMS (petrol), 0.013billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003billion litres of Low Pure Fuel Oil (LPFO) in the month under review.
In term of revenue, the Corporation said ₦337.63billion was made on the sale of white products by PPMC in December 2019, compared to ₦105.62billion sales in November, 2019.
Expatiating on the MFOR the corporation’s Group general manager, Group Public Affairs Division, Dr Kennie Obateru, said the NNPC recorded an increased trading surplus of ₦5.28 billion in its December 2019 operations compared to the ₦3.95billion surplus posted in November last year.
Dr Obateru listed NNPC’s subsidiaries with notable improved positions to include: Integrated Data Services Limited (IDSL), Nigeria Gas Marketing Company (NGMC), Nigerian Pipeline and Storage Company (NPSC) and Duke Oil Incorporated.
He explained that in general terms, the performance was impacted positively by the reduced deficit posted by NNPC corporate Headquarters during the period under review; adjustments to previously understated revenues by IDSL and Duke Oil; and reduction in the costs of pipeline repairs/Right of Way maintenance and gas purchases by NPSC and NGMC respectively.
According to him, further analysis of the report shows that in the Gas sector, out of the 239.29billion Cubic Feet (BCF) of gas supplied in December 2019, a total of 148.32BCF of gas was commercialised, consisting of 34.78BCF and 113.54BCF for the domestic and export market respectively.