NNPC warns consumers over adulterated diesel in circulation

…explains measures to cut crude oil production cost

The Nigerian National Petroleum Corporation (NNPC) has warned consumers of petroleum to beware of fake and adulterated diesel in circulation.

This is even the corporation said that it taking measures to bring down the cost of crude oil production to $10 per barrel or below.

The corporation, who raised the alarm in a statement by its spokesperson, Kennie Obateru, stated that the alarm followed reports over the prevalence of low grade and contaminated diesel being offered at discounted prices in some parts of the country to consumers.

The Managing Director of NNPC Retail Limited, the products distribution subsidiary of the corporation, Billy Okoye raised the alarm in a monitoring report issued in Abuja.

He admonished motorists and other consumers relying on diesel for their businesses to be wary of the off-spec products in circulation.

Mr Okoye urged Nigerians to be aware of the dangers associated with the low grade and contaminated diesel.

“Nigerians must beware of the dangers of using this contaminated product. It is harmful to machines and the environment,” he said. “The NNPC Retail Limited as a market leader considers it incumbent upon it to alert the general public on the existence of the harmful product in the market.”

The official said the NNPC “was still investigating to find out those behind the contaminated product.”

“The NNPC Retail Limited deals only in premium, high-quality petroleum products in the interest of Nigerian motorists and other users. To be sure of the quality of products they buy, consumers should patronise NNPC stations nationwide,” he said.

He said as a deregulated product, diesel is also imported by other major and independent petroleum products marketers in the country.

The issue of adulterated petroleum products is not new to Nigerians.

Between 2010 and 2012, at the peak of the fuel subsidy regime in the country, petroleum products oozing awful odour were imported and distributed in the country by marketers who were desperate to justify their claims for subsidy payments.

In recent time, the proliferation of illegal refineries has increased the circulation of these adulterated products.

Meanwhile, the COO of the Corporation in a separate statement explained that terrain peculiarity was an important factor in determining cost, arguing that issues such as pipeline vandalism and crude oil theft, among others, were some of the factors peculiar to the Nigeria terrain that drive up crude oil production cost in the country.

He, however, stated that NNPC was looking very closely at such variable as logistics, security and transportation with a view to reducing cost of production to $10 and below per barrel.

He disclosed that much had been done over the years in the area of reducing contracting a cycle which used to be a major factor responsible for high cost of production, stressing that the National Petroleum Investment Management Services (NAPIMS) achieved a six-month contracting cycle.

Amidst speculations of non-compliance by some countries with the production cuts agreed upon by the Organisation of the Petroleum Exporting Countries (OPEC) and its non-member allies, Mr Ewubare affirmed that Nigeria was in full compliance with the agreed output cuts, saying reports including Nigeria on the list of non-compliant countries were not true.