Why Nigeria petrol suppliers are shutting down

By Tolulope Oke

The GMD Nigerian National Petroleum Company (NNPC), Mele Kyari revealed that the majority of refineries that supply Premium Motor Spirit (PMS), also known as petrol, to Nigeria are ceasing operations.

He stated this on Monday in Abuja during the House of Representatives Ad-hoc Committee’s continuing investigative hearing to look into the regime of gasoline product subsidies from 2013 to 2022.

In contrast to the N4 trillion allocated in the 2022 Appropriation Act, Kyari, who was represented by NNPC Chief Financial Officer Umar Ajia, claimed that just N3.4 trillion is required to subsidize an average of 66.7 million litres of petrol consumed daily.

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He said, “We have about 1.6 billion litres incoming – land and marine. This is the minimum level we have to maintain, especially as we approach winter. Most of the refineries that we procure from are actually shutting down their operations because of the clamour for green energy and COP26 compliance. Even gas that is transition fuel for us is being given an eight years. Of course, we do not agree.”

As a matter of fact, this comes after the NNPC revealed the volúmè of petrol consumed in Nigeria decreased to 66.7 million litres per day as against the average of 98 million being reported in some quarters.

Renewable energy comes from sources that are constantly and naturally renewed (hence the name), such as wind power and solar energy. Renewable energy is also often called sustainable energy. Renewable energy sources are the opposite of fossil fuels, like coal and gas, which are a finite energy source.