Under-recovery on petrol or the losses the Nigerian National Petroleum Corporation (NNPC) incurs to keep the pump price of petrol at N145 per litre, has dropped from about N80 per litre to between 20 and N25 per litre, the Group Managing Director of the corporation Dr. Maikanti Baru said yesterday.
Speaking to journalists after an on-the-spot assessment of supply and distribution situation across some fuel stations in Abuja and its environs, Baru explained that the corporation had no control over under recovery as it was directly proportional to the prevailing crude oil price.
“When we had very high crude prices – over $80 per barrel, we were seeing under-recovery getting to N70 to N80 per litre. Today we are having much lower crude prices and under-recovery has also gone down significantly to the region of N20 and N25 a litre,” Baru said.
The GMD thanked President Buhari for maintaining the existing pump price of N145.00 per litre even when under-recovery on petrol hit N80.00 per litre.
He said the corporation in collaboration with other sister agencies had been able to deal with some of the problems that caused scarcity of petrol last year such as supply shortage, hoarding and diversion by marketers.
Daily Trust quoted Baru as saying NNPC had 3billion litres of petrol equivalent to 60 days sufficiency, adding that the stock would suffice through the election period, even if no fresh addition was made.