NNPC must sell petrol above landing cost to combat smuggling — Oil Minister

Senator Heineken Lokpobiri, the Minister of State for Petroleum (Oil), has highlighted the need for the Nigerian National Petroleum Corporation (NNPC) Limited to adjust its pricing strategy for imported fuel to curb smuggling.

Speaking at the 2024 Energy and Labour Summit in Abuja, Lokpobiri pointed out that selling imported fuel below the landing cost is a key factor fueling smuggling activities.

Lokpobiri remarked, “If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop.

“When smugglers are taking the products outside the country, even if you put all the policemen on the road, they are Nigerians; you and I know the answer.”

He also criticised security agencies, suggesting that their complicity has exacerbated the smuggling problem.

According to Lokpobiri, the persistent issue of fuel smuggling to neighbouring countries remains a challenge that cannot be completely eradicated.

Addressing another critical issue, Lokpobiri noted the financial constraints faced by NNPC in maintaining and rebuilding Nigeria’s ageing pipelines.

“These pipelines, some dating back to the 1960s and 1970s, are highly susceptible to vandalism and crude oil theft, which significantly impacts the nation’s oil revenue.

“The old, corroded pipelines, some of which date back to the 1960s and 1970s, are easily vandalised,” Lokpobiri explained.

“The reason why pipeline vandalism is very easy to do is because the pipelines have all expired; they are completely corroded.

“So, anybody can just go and tap it, and the thing is busted. The challenge lies in transporting it to terminals due to the deteriorated state of the pipelines.”

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