Fuel Crisis: Baru says petrol is being subsidised by FG to the tune of N26 per litre

The managing director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru has said petrol is currently being subsidised to the tune of N26 per litre.
According to The Nation’s report, the NNPC boss promised Nigerians that the current fuel scarcity will soon be a thing of the past.

Baru revealed this while speaking with reporters in Abuja on Sunday, December 24, that the consumption of PMS had risen to over 50 million litres per day, due to hoarding and diversion.
Speaking of fuel subsidy, Baru said the landing cost of petrol (PMS) is N171 per litre and it is being sold at the pump at N145 per litre – a difference of N26.

He said the product was being smuggled across the borders because of the price difference that exists between Nigeria and the neighbouring countries.

He, however, stated that NNPC is already working actively to ensure that the fuel crisis disappears in two days.

He stated that the federal government has approved preferential and speedy treatment for vessels carrying petrol, to end the lingering scarcity.

The Navy, Nigerian Ports Authority (NPA), Customs and Excise and the Nigerian Maritime Administration and Safety Agency (NIMASA) are also making sure that vessels carrying fuel are being cleared on time to facilitate speedy product transfers to various depots, including during weekends and public holidays.

Baru also said NNPC has begun a 24-hour loading and sales operations at all depots and its mega stations across the country.

He noted: “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.”

The NNPC boss said that local refineries have also been performing impressively to ensure the fuel scarcity problem is resolved.

He said that the Port Harcourt and Kaduna refineries were contributing about one million litres per day and 2.8 million litres per day of PMS.

According to Baru, NNPC has also set up ‘fuel war room’ which consists of NNPC, Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA) and Petroleum Equalisation Fund (PEF).

The ‘fuel war room’ team is working on ensuring steady supply and distribution of petrol nationwide.

Baru, therefore, assured that with all the measures put in place, the crisis would end within the next two days.

He added that efforts were in place to ensure that the crisis did not go beyond this week.