Business

There’s still N26 subsidy per litre of fuel —NNPC

There’s still N26 subsidy per litre of fuel —NNPC

Nigerian National Petroleum Corporation (NNPC) Managing Director, Maikanti Baru, has said that petrol is still being sold at a subsidized rate of N26 per litre.

Baru explained that the product is exported into the country at a landing cost of N171 per litre but sold at a pump price of N145 per litre, a difference of N26.

He made this disclosure when he spoke with newsmen in Abuja on Sunday, adding that due to hoarding and diversion of the product, that its consumption in the country has risen to over 50 million litres per day.

According to him, there is currently high rate of smuggling of fuel across the borders because of the price disparity which exists between Nigeria and the neighbouring countries.

He also explained that the cost, insurance and freight price of Premium Motor Spirit (PMS) is $620 per metric tone and that at N305 to a dollar, the landing cost translates to N171 per litre.

On efforts to cushion the lingering scarcity of the product, Baru said that the Federal Government has approved preferential and speedy treatment for vessels carrying petrol.

Clearance of fuel vessels and anchorage services are expedited to facilitate speedy product transfers to various depots, including during weekends and public holidays by the Navy, Nigerian Ports Authority (NPA), Customs and Excise and the Nigerian Maritime Administration and Safety Agency (NIMASA).

READ ALSO: Buhari summons NNPC boss Baru over fuel scarcity

Baru went further to say that President Muhammadu Buhari had been concerned about the fuel crisis and had directed all stakeholders, including security agencies, to ensure a speedy resolution of the situation.

Noting that NNPC has begun a 24-hour loading and sales operations at all depots and its mega stations across the country, he added, “Major marketers were also advised to carry out 24-hour operations, most of who have been complying. This has increased load-out from the depots significantly and continuous sales at the filling stations nationwide.”

 

RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

Join the conversation

Opinions

About the author

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

Do NOT follow this link or you will be banned from the site!