Nigeria spends $5bn on fuel consumption in one year

Nigeria spends $5bn on fuel consumption in one year

Nigerians bought a total of N2.106 trillion of refined products between February 2020 and February 2021, Nigeria’s national oil corporation has said.

According to the Nigerian National Petroleum Corporation (NNPC), petrol took a large chunk of this amount at N2.070 trillion (about $5bn) of the entire sales.

This disclosure was made at the Corporation’s delayed full Monthly Financial Operations Report (MFOR) for February. Furthermore, the NNPC revealed that during the period under review, 17.215 billion litres of fuel, accounting for 99.37% of total refined products were imported.

The corporation in its breakdown of total sales for the month, revealed that in the month of February 2021, N188.15 billion was made on the sale of white products (cooking gas, gasoline, kerosene, diesel and petrol), lower than N190.72 billion sales recorded in January 2021.

In the month of January 2021, 1.436.40 billion litres of white products were sold and distributed which dropped to 1.414 billion litres in February 2021.

According to the national oil company, this comprised 1.414 billion litres of petrol and 0.17 billion litres of diesel, consumed by Nigerians during the period.

From February to May 2020, the consumption figures for petrol showed that 59.6 million, 53.16 million, 33.01 million litres and 30.67 million litres were distributed by the Petroleum Product Marketing Company (PPMC) respectively.

In June 2020, it was 44.84 million litres, in July 2020, consumption was still relatively low at 33.42 million litres, it was 30.67 million litres in in August 2020, while in September 2020, daily distribution was 20.1 million.

The average daily product distribution sales volume in October 2021 was 39.50 million litres, 57.53 million litres in November, 73.10 million in December and 46.34 million litres in January 2021.

Fuel importation during the Coronavirus induced lockdown, according to the released report, decreased from an average of 1.812 billion litres in April 2020 , to 495 million litres in May, but increased to 767 million in June before stabilising and hitting 2.39 billion in October, the highest in the entire 2020.

According to the oil corporation, between January 2020 to January 2021, cumulative production from all fields totalled 704.30 barrels of crude oil, which is an average daily production of 1.77 barrels per day.

The report also revealed that, Nigerian Petroleum Development Company (NPDC) operated JV assets, in which it owns 55 per cent controlling interest, crude oil production amounted to 30,537,911 barrels or 43.36 per cent of the NPDC total production.

NNPC revealed that in January 2021, a total volume of 49.26 million barrels of crude oil and condensate was lifted by all parties, adding that out of this volume, 10.22 million barrels was lifted by NNPC on behalf of the federation, while the balance of 39.04 million barrels were lifted by the International Oil Companies (IOCs) and the independents.

“Of the 10.22 million barrels lifted on the account of NNPC in January 2021, 5.74 million barrels and 0.57 million barrels were for domestic and export markets respectively.

“At an average oil price of $56.80/barrel and exchange rate of N379/$, the domestic crude oil lifted by NNPC is valued at $326,134,455 or a naira equivalent of N123,604,958,630.71 for the month of January 2021.

“The remaining crude oil lifted for export was valued at $30,993,088 at an average price of $54.16/barrel. The total value of crude oil lifted on the account of NNPC in January 2021 was thus $357,127,544,” the report noted.

The corporation additionally revealed that from January 2020 to January 2021, a total volume of 698 million barrels of crude oil and condensate was lifted by all parties.

For February 2021, the NNPC reports that the three refineries processed no crude and had a combined yield efficiency of zero per cent, due largely to rehabilitation works in the refineries.

“The combined value of output by the three refineries (at Import Parity Price) for the month of February 2021 amounted to approximately N0.10billion. No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to N6.98 billion. This resulted to an operating deficit of N6.88billion by the refineries,” the corporation said.

Author: abokimallamfx