Nigerian President Muhammadu Buhari has given approval for the Nigerian National Petroleum Corporation (NNPC) to import additional crude oil volume to guarantee supplies of Premium Motor Spirit (PMS) petrol with a goal to end fuel scarcity in the country, The Nation reported.
Nigerian major oil marketers were pulling out from the crude importation business, as they faced challenges in contributing their supply quota to meet national demand for petrol due to constraints in accessing the foreign ‘crude oil for refined product’ exchange and further outstanding subsidy limitations. This resulted in NNPC assuming 100% crude import obligation in order to guarantee national petrol supply.
Since the domestic crude oil supply of 445,000 bbls/d can only provide for about 50% of the required national demand of about 45m liters of petrol, NNPC has secured presidential approval to take over from major oil marketers and provide additional crude oil volume. A government statement noted that the corporation was pursuing an improved model for ‘crude oil for refined product’ exchange – the Direct Sale-Direct Purchase arrangement.
According to All Africa, NNPC also said that it wants to re-assure Nigerians that it was on top of the petroleum products supply and distribution situation and that it remains committed to eliminating this endemic issue within the next few days.
“We kindly call on all Nigerians to partner with us on this journey to allowing the whole process of change come into fruition,” the corporation stated.