It has been revealed that the Nigerian National Petroleum Company (NNPC) may need N201bn worth of clean Premium Motor Spirit (petrol) to bring 170.25 million litres of adulterated product imported into the country up to standard.
Indications to this effect were revealed by the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed, during a visit to some depots in Lagos.
He had said “All the off-spec material (product) will re-blended to very good quality, and it will be certified and recertified before it goes into the market. The component that was in excess was methanol; what we agreed was that for every 200 litres of the affected volume, we need about 800 litres to blend.”
Based on a recent analysis of Farouk Ahmed’s statement and parameter for the re-blending of the adulterated petrol and bringing it up to standard, the two cargoes, containing a total of 170.25 million adulterated petrol, would require 681 million litres of clean product worth N201bn at a landing cost of N295 per litre.
It was however noted that the N201bn is only a conservative estimate, as there are other costs that would be associated with the re-blending.
