The Management of the Nigerian National Petroleum Corporation, NNPC, has
\nsaid that diversion of kerosene to neighbouring countries, industrial use,
\naviation fuel, sharp practices by middlemen and pipeline vandalism are
\nreasons why kerosene is not readily available for domestic consumption.
\nGroup Managing Director of the Corporation Engr. Andrew Yakubu made this
\ndisclosure Tuesday during the two-day investigative public hearing on
\nsupply, distribution, expenditure and subsidy on kerosene.
\nEngr. Yakubu maintained that due to a number of issues ranging from
\nincessant pipeline vandalism and diversion of the product to road
\nconstruction, the product which is meant for the masses is not readily
\navailable.
\n\u201cThere are quite a number of competing demands for kerosene and until
\nthese are addressed by other relevant agencies, the issue of kerosene not
\nbeing readily available for domestic use will continue to reoccur every
\nnow and then. The way out is for this committee to collaborate with the
\nNNPC to encourage the sale of liquefied petroleum gas otherwise known as
\ncooking gas,\u201d Engr. Yakubu quipped.
\nHe informed that already the NNPC has stepped up the supply of LPG from
\n65,000 metric tonnes in 2011 to 250,000 metric tonnes in 2013 stressing
\nthat the target is to grow the consumption of the product to 500,000
\nmetric tonnes by the end of 2014.
\nThe NNPC helmsman stated that the increase in the consumption of cooking
\ngas will go a long way to reduce the dependence on kerosene which will in
\nturn help in the redistribution of kerosene to those who may still want to
\nconsume it.
\nResponding to a question on whether kerosene subsidy is still in place,
\nthe NNPC GMD said that was exactly what he met when he assumed office in
\nJune 2012 adding that kerosene subsidy is funded by unrealizable revenue
\nflow. \u201cThe NNPC takes crude at international price and sells it at the
\ndomestic market at regulated price of N50 per liter,\u201d he stated.
\nAnswering a question on what the NNPC is doing to stop kerosene
\ndiversion, the NNPC helmsman said that the Corporation does not have the
\npower to police marketers and sanction them adding that there are
\nstatutory bodies with the responsibility.
\nCommenting on the legality of kerosene subsidy, the NNPC Company
\nSecretary, Anthony Madichie citing Petroleum Act section 6 subsection 1
\nsaid only the Minister of Petroleum Resources has the authority to fix
\npetroleum product prices stressing that if a presidential directive is
\ngiven and not gazetted, such directive will not be effective.
\nIn his submission to the committee, the Managing Director of the Pipelines
\nand Products Marketing Company, PPMC, a subsidiary of the NNPC, Prince
\nHaruna Momoh informed that kerosene is sourced for the Nigerian market
\nthrough importation and domestic refining adding that Dual Purpose
\nKerosene is sold to coastal marketers, Major Marketers Association of
\nNigeria, MOMAN, Depot and Petroleum Products Marketers Association, DAPPMA
\nand NNPC Retail.
\n\u201cI can confirm to this committee the statistics for the supply of DPK is
\nas follows. In 2010, NNPC supplied 2,515,582.44 metric tonnes of DPK, in
\n2011, NNPC 1,922,263.56 metric tonnes, in 2012, NNPC supplied 2,622,843.20
\nmetric tonnes and in 2013, NNPC supplied 2,671,747.97 metric tonnes making
\na total of 9,732,437.17 metric tonnes,\u201d Prince Momoh revealed.
\nIn his keynote address, the Speaker of the House of Representatives, Hon.
\nAminu Tambuwal represented by the Deputy Speaker, Hon. Emeka Ihedioha said
\nthe investigative hearing is aimed at finding a lasting solution to
\nkerosene scarcity in the country.
\nPresiding over the investigative hearing, the Chairman of the House of
\nRepresentatives Committee on Downstream, Hon. Dakuku Peterside said the
\nhearing was not to witch hunt any agency but to work out modalities to
\nensure that kerosene is bought at the official pump price by the masses<\/p>\n","protected":false},"excerpt":{"rendered":"
The Management of the Nigerian National Petroleum Corporation, NNPC, has said that diversion of kerosene to neighbouring countries, industrial use, aviation fuel, sharp practices by middlemen and pipeline vandalism are…<\/p>\n","protected":false},"author":1,"featured_media":22998,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-22997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n