The rising cost of gasoline landing and the inability of the Nigerian National Petroleum Corporation (NNPC) to increase the price at the reservoir have continued to negatively affect the corporation’s operations, according to the latest data from the national oil company.
The NNPC’s figures from its full market operations report for January indicated that, as a result of not being able to sell the product at the prevailing price dictated by incurred expenses, the group’s operating income compared to December 2020 decreased by 22.12 percent or N120.92 billion to stand at N425.74 billion.
Spending for the month was reduced by 20.79 percent or N106.03 billion to N416.44 billion, falling from 0.98 percent to 0.96 percent as a proportion of revenue.
The corporation stated that it earned N190.72 billion from sales of white goods by PPMC in January compared to N288.77 billion from sales in December 2020.
“Total revenue generated from sales of white goods for the period from January 2020 to January 2021 amounted to N2,070.34 billion, where gasoline contributed around 99.13 percent of total sales with a value of N2.05 trillions, “he added.
The corporation’s books also reflected a considerable reduction to N9.3 billion compared to a surplus of N24.1 billion in the previous month, a difference of N14.89 billion.
The NNPC recently stated that its trade surplus or trade deficit is derived after deducting the expense profile from income in the period under review.
Aside from that loss, the corporation’s group managing director, Mr. Mele Kyari, had said in March that up to Naira 120 billion was spent monthly on insufficient recovery, noting that while the actual cost of the Import and handling amounted to 234 naira per liter, the government continued to sell fuel at 162 naira per liter.
“This 66th edition of the report in January 2021 presents a reduced trade surplus of N9.30 billion compared to the surplus of N24.19 billion in December 2020.
“The 61.55 percent decrease was primarily due to the high average landing cost and the low selling price of gasoline by Petroleum Products Marketing Company (PPMC). This is despite the significant increase in earnings of the Nigerian Petroleum Development Company (NPDC) amid improving market fundamentals and strong global demand for crude, “the report said.
In January 2021, NNPC said that it remitted N163.63 billion to the Federation’s Account Allocation Committee (FAAC), adding that from January 2020 to January 2021, total remittances to FAAC were N2.1 trillions; of which the federation and the joint venture with priority government projects received N850.63 billion and N1,041.48 billion, respectively.
On the dollar payments to the joint venture cost recovery and the federation account, the NNPC estimated the total export receipt at $ 108.75 million for January 2021 versus $ 125.25 million in December 2020.
He said crude oil revenue amounted to $ 24.32 million, while gas and miscellaneous revenue amounted to $ 66.28 million and $ 18.15 million, respectively.
“Of the export earnings, $ 28.43 million was remitted to the federation account, while $ 80.32 million was remitted to fund joint venture cost recovery for the month of January 2021 to guarantee production current and future, “the report said.
The corporation calculated the total sales of white goods for the period from January 2020 to January 2021 at 17.11 billion liters, where gasoline accounted for 16.9 billion liters or 99.31 percent.
At an average oil price of $ 50.78 / barrel and an exchange rate of N379 / $, the domestic crude oil extracted by NNPC was valued at $ 382.8 million or a naira equivalent of N145 billion as of December 2020.
In addition, he indicated that between December 2019 and December 2020, all parties raised a total volume of 708 million barrels of crude oil and condensates.
Still, in December 2020, the NNPC stated that total crude oil production in Nigeria decreased by 2.31 million barrels or 4.99 percent to 44.02 Mb with a daily average of 1.42 Mb / d in comparison. with production from November 2020.
“Production was interrupted by the closure of the Forcados and Okono terminals due to alleged leaks in the Trans Escravos pipeline and the Mystras – Okpoho subsea pipeline, respectively.
“Likewise, the Abo, Usan, Ima, and Escravos terminals were closed for maintenance. The production