NNPC Stops Kerosene Importation

The Nigerian National Petroleum Corporation has stopped the importation of kerosene following the directive of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

*Photo used for illustrative purpose*

 

The Nigerian National Petroleum Corporation has stopped the importation of Dual Purpose Kerosene into the country for three months running, Punch reports.

 

This was contained in its latest financial and operations report.

 

According to the August 2016 edition of the report, the last time that the corporation imported kerosene into Nigeria under the Direct-Sale Direct-Purchase/Offshore Processing Agreement was in May.

 

Revealing more details, the report revealed that an analysis of the report on Wednesday showed that in the months of June, July and August this year, the NNPC did not get a single litre of DPK under the DSDP/OPA.

 

This comes after the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in February announced the replacement of the crude swap arrangement with what he called the Direct-Sale Direct-Purchase framework, which took off in April.

 

The DSDP was adopted to replace the crude swap initiative and the offshore processing arrangement in a bid to entrench transparency in the crude oil for product transaction by the country’s national oil firm.

 

Documents sighted by our correspondent at the Abuja headquarters of the NNPC showed that by implementing the DSDP, Nigeria was able to save $336.4m (N102.6bn at the official exchange rate of N305 to $1) between April and July 20167.

 

However, the latest report of the corporation showed that while the national oil firm continued the DSDP framework for the importation of Premium Motor Spirit, popularly known as petrol, it discontinued the importation of DPK through the channel.

 

For June, July and August, the NNPC was supplied 1.18 billion, 798.33 million and 901.35 million litres of PMS, respectively, but it got no single drop of DPK during these months via the DSDP/OPA scheme.

 

“In August 2016, 901.35 million litres of white products were supplied into the country through the DSDP arrangement, while 798.33 million litres were supplied in the month of July 2016; only PMS (was) supplied through the DSDP in the months of July and August 2016,” the report stated.

 

The report, however, did not state if the NNPC was importing kerosene through other channels and officials of the firm could not confirm this on Wednesday.