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NNPC blames kerosene scarcity on product diversion, others

By on February 19, 2014

The Nigerian National Petroleum Corporation has said that diversion of kerosene to neighbouring countries, industrial use, aviation fuel, sharp practices by middlemen and pipeline vandalism are reasons why the product is not readily available for domestic consumption.

Its Group Managing Director, Mr. Andrew Yakubu, disclosed this on Tuesday during the two-day investigative public hearing on supply, distribution, expenditure and subsidy on kerosene.

Yakubu, in a statement from the corporation, maintained that incessant pipeline vandalism and diversion of the product to road construction had made kerosene virtually inaccessible to end users.

He was quoted as saying, “There are quite a number of competing demands for kerosene and until these are addressed by other relevant agencies, the issue of kerosene not being readily available for domestic use will continue to reoccur every now and then.

“The way out is for this committee to collaborate with the NNPC to encourage the sale of liquefied petroleum gas otherwise known as cooking gas.”

He said the NNPC had stepped up the supply of LPG from 65,000 metric tonnes in 2011 to 250,000 metric tonnes in 2013, adding that the target was to grow the consumption of the product to 500,000 metric tonnes by the end of 2014.

Yakubu said the increase in the consumption of cooking gas would reduce the dependence on kerosene and would in turn help in the redistribution of kerosene to those who may still want to consume it.

Responding to a question on whether kerosene subsidy was still in place, the NNPC GMD said he met subsidy when he assumed office in June 2012.

According to him, kerosene subsidy was funded by unrealisable revenue flow.

 

 

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