NNPC expends N6bn on idle refineries in October

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Without production, the three refineries recorded N6 operational expenses in October 2020, The learnt on .

The total value output by the refineries for the period under was N0.51, which resulted in an operating deficit ₦5.49 by the refineries.

NNPC disclosed these in its October 2020 Financial and Operations Report.

Commenting on Refineries Economics for the Period October 2020, the report said: “The Corporation has been adopting a Merchant Plant Refineries Business Model since January 2017.

“The model takes cognizance the Products Worth and Crude Costs. The combined value output by the three refineries (at Import Parity Price) for the month October 2020 amounted approximately ₦0.51billion.

“No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted ₦6.00billion. This resulted an operating deficit ₦5.49billion by the refineries”.

NNPC also noted petroleum Product from Direct sales Direct Purchase (DSDP) in October 2020, 2,391.15 litres of PMS were supplied into the country through the DSDP arrangement as against the1,578 93 litres of PMS supplied in the month of September 2020.

It added a total of 1,224.54 litres of white products were sold and distributed by Products Marketing Company (PPMC) in the month of October 2020 compared with 603.39 litres in the month of September 2020.

According the report, this comprised 1224.20 million litres of PMS, 0.31million litres of AGO and 0.033 million litres of DPK.

“There was no sale of special product in the month”, said NNPC.

Meanwhile, the report noted total sale of white products for the period October 2019 to October 2020 stood at 16,462.50 million litres and PMS accounted for 16,344.36million litres or 99.28 per cent.

The corporation said ₦158.04 billion was made on the sale of white products by PPMC in the month of October 2020 compared to N80.15 billion sales in September 2020.

Total revenues generated from the sales of white products for the period October 2019 to

October 2020, according to NNPC, stood at ₦1,951.42 billion, where PMS contributed about 99.07 per cent of the total sales with a value of ₦1,933.22 billion.