The Nigerian National Petroleum Corporation, NNPC, has warned of possibly fuel scarcity in the country following Senate’s directive to it to halt subsidy deduction and refund N216 billion already expended to the coffers of the federal government. TheCable quoted an unnamed source in the NNPC as saying compliance with the directive would
will trigger shortages of the fuel on a “monumental proportion”. The NNPC was also quoted as saying the directive is impracticable “as only the president can give such order”.
“In a situation where private companies are not importing, leaving the NNPC as sole importer, how do you provide for the 50 million litres of daily demand in the country,” an NNPC official, who declined being named, said.
NNPC previously put the subsidy claim on fuel import, which it tagged “under recovery”, at N774 million per day.
It said it had continued to bear the loss, which simply translates to a shortfall in revenue NNPC should have transferred into the federation account, to ensure uninterrupted fuel supply in the country.
Reuters reported on Thursday, that NNPC, seeking to maintain the normalcy in supply ahead of elections next year, had booked for a large quantity of petrol.
Nearly 1.5 million tonnes or 1.89 billion litres of petrol are on standby for shipment, the agency reported, quoting industry monitor Genscape.