Under-Recovery: Fuel Subsidy Drops To N20 Per Litre — NNPC

…Says current fuel stock to last till after 2019 elections

Maikanti baru

The
Nigerian National Petroleum Corporation, NNPC, Monday, disclosed that
under-recovery of Premium Motor Spirit, PMS, also known as petrol, has
dropped to N20 per litre from over N80 a couple of weeks back, noting,
however, that the Federal Government was still committed to bearing the
additional cost above the regulated price of N145 per litre. Maikanti
Baru What this means is that if the Federal Government stops subsidizing
the price of PMS today, the actual selling price of PMS would rise to
N165 per litre.

Addressing newsmen during a tour of petrol
stations in Abuja, Group Managing Director of the NNPC, Mr. Maikanti
Baru, said the corporation was not deterred by the rising cost of
under-recovery and would continue to import PMS into the country to
guarantee stability in supply. READ

Baru and his team visited
petrol stations at Nyanya, Abuja-Kaduna Expressway, Kubwa and Central
Business District, all in the Federal Capital Territory. 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.

Baru disclosed that
under-recovery, also known as subsidy, had a couple of months back,
risen to about N80 per litre, noting that within that period, the
government insisted on bearing the additional cost so as not to bring
hardship on Nigerians.

He said, “Today, fuel distribution is not
an issue, supply is not an issue and the magnanimity of the President
to ensure that despite the disparity between landing cost and pump
price, we are able to ensure that every Nigerian had access to
sufficient products at government regulated price of N145 per litre.
Despite the fact at some point, we had imported PMS with under-recovery
of over N80 per litre.

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“The worry that we had has been cleared.
We also thank the president for maintaining the N145 per litre pump
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. This
was because when price of crude oil rises, 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 per
barrel, it is about N25 per litre. We are prepared to continue bringing
in the products no matter the under-recovery we incur on the commodity.”

Baru further stated that presently, the country has fuel stock
that would last the country for over 60 days, adding that current supply
would last the country till 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. They 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 Nigeria Security and Civil Defence
Corps, NSCDC, Mr. Abdullahi Aminu, commended the NNPC for partnering
with security agencies in curbing hindrances to fuel supply.

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He
said, “We always appreciate good and effective collaboration that would
ensure 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.”

Source:- Vanguardngr

source http://9jaflaver.com/under-recovery-fuel-subsidy-drops-to-n20-per-litre-nnpc/

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