Under recovery drops to N20 per litre – Baru

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC) says that under-recovery of Premium Motor Spirit (PMS), also known as petrol, has dropped to N20 per litre from over N80.

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

Baru made the disclosure 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 effective distribution of products to customers.

The filling stations visited include Conoil in Central Business District, AA Rano on Nyanya Road, Shema and NNPC Filling Stations along the Kubwa Express Road.

He added that under-recovery had a couple of months back risen to about N80 per litre, noting that within that period the government bore the additional cost so as not to bring hardship on Nigerians.

“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.

“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,’’ he said

According to him, the Federal Government is still committed to bearing the additional cost above the regulated price of N145 per litre.

Baru also reiterated the effort of the government to ensure stable fuel supply during the Yuletide and beyond, especially in the face of attempts by some individuals to disrupt supply.

He stated that presently the country had fuel stock to last for over 60 days, adding that current supply would last the country until after the 2019 general elections.

He said: “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.

“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.

“There will be sufficient products, and if any have hoarded, they should better bring it out and put it into the market.”

Also speaking, Assistant Commandant-General, Operations of the,m NSCDC, Mr Abdullahi Aminu, commended the NNPC for partnering with security agencies in curbing hindrances to fuel supply.

“We always appreciate good and effective collaboration that ensures sanity in the oil and gas industry. We want to commend the NNPC for its efforts at curbing the menace of fuel crisis that usually hampers the Yuletide season.

“We are deploying all available resources from Lagos, Ogun and Oyo state on the Right of Way from Atlas Cove to Mosimi, and to Ibadan, to make sure there is no vandalism, no oil theft, no scooping from the right of way.”

Our correspondent reports that managers of the filling stations visited assured of adequate stock pile of products while some motorists and cyclists, popularly known as Okada riders, commended the effort of government in ensuring adequate supply and distribution of petrol across the country.