Maikanti Baru, group managing
director of the Nigerian National Petroleum Corporation (NNPC), says that
under-recovery recorded on petrol has dropped to N20 per litre from over N80.
Baru made this known in Abuja on
Monday during a tour of filling stations with the Department of Petroleum
Resources (DPR) and Nigeria Security and Civil Defense Corps (NSCDC) officials
to ascertain the effective distribution of products to customers.
Under-recovery is the term used
by NNPC to describe the financial amount of subsidy the federal government
absorbs for keeping the pump price of petrol at N145 per litre.
DPR estimates that 45 million
litres of petrol is consumed daily.
“Unlike 24th of December last
year, where there was scarcity, long queues and few filling stations with fuel;
it is different today. The worry that we had has been cleared,” NAN quoted him
to have said.
“We also thank the president for
maintaining the N145 per litre pumping price. During the course of the year, we
had times when we brought in products that indicated an under-recovery of almost
N80 per litre; and because of the peak of the crude oil price, the
under-recovery on product price also rises.
“Today, we are having much lower
crude oil prices and under-recovery had also gone down significantly to the
region of N20 and N25 per litre, depending on what the price is.
“At 60 dollars, it is about N25
per litre.”
According to the NNPC boss, the
federal government is still committed to bearing the additional cost above the
regulated price of N145 per litre.
“At the moment, we have 60 days
supply in tank; almost three billion litres of PMS that would last us, without
bringing in any extra drop of fuel, another 60 days,” he said.
“We are seeing having products
clearly throughout the election period; we have sufficient products. If any
unscrupulous individual or group is planning to sabotage supply from now till
the election period, we are going to disappoint them.”
In October, Ben Akabueze,
director general of the Budget Office of the Federation, had said that the
federal government is paying N53 on every litre of petrol consumed in the
country.
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