The Nigerian National Petroleum Corporation (NNPC) stated yesterday at the hearing organised by the Dakuku Peterside-headed House Committee on Petroleum (Downstream) why it did not obey the presidential directive stopping subsidy on kerosene in 2009.
NNPC Company Secretary Anthony stated that, only the Minister of Petroleum Resources has the authority to fix petroleum product prices. If a presidential directive is given and not gazetted, such directive will not be effective.
The Group Managing Director of the NNPC, Mr. Andrew Yakubu stated that the committee is investigating the supply and distribution of kerosene as well as the subsidy expenditure on kerosene from 2010 to 2013.
He however failed to disclose how much was spent on subsidy between 2010 and 2013.
He also could not provide the authority on which the subsidy deductions were made or how the funds for obtaining the product were sourced.
He, said he was aware that N8.49 billion was spent on subsidising 5,015.413.022.06 trillion litres of kerosene as well as 15,177,76,123 trillion liters of fuel imported into the country within 19 months.
Both Yakubu and the Managing Director, Petroleum Products and Pipeline Marketing Company (PPMC), Mr Haruna Momoh, gave reasons for consistent shortfall in the supply of kerosene.
Yakubu said situations whereby the product is diverted to neighbouring countries and used for Industrial purposes, painting, adhesive, chemical and allied products cause scarcity.
He also said the adulteration of diesel to kerosene and its use for aviation fuel, pipeline vandalisation and sharp practices of middlemen also contribute to non-availability of the product.
He added: “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.”