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.