The Nigerian National Petroleum Corporation, NNPC’s latest financial and operations report reveals that for three months, it had stopped Dual Purpose Kerosene importation into the country.
On Wednesday, November 9th, an analysis of the corporation’s report indicated 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.
The last time that the corporation imported kerosene into Nigeria under the Direct-Sale Direct-Purchase/Offshore Processing Agreement was in May, as cited in its August edition of the report.
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The Direct-Sale Direct-Purchase framework, DSDP, which took off in April, 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. It replaced the crude swap arrangement.
According to reports, 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 2016.
NNPC’s latest report shows that it has discontinued the importation of DPK through the DSPD framework, though the importation of Premium Motor Spirit, popularly known as petrol, is still running.
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.
Though it is not confirmed whether the NNPC was importing kerosene through other channels other than the DSDP, the report indicated that the corporation produced DPK from the country’s refineries.
In August, in a bid to check the arbitrary increase in the pump price of kerosene, the Federal Government placed an order for massive importation of the product.