The Nigerian National Petroleum Corporation (NNPC) said it spends N774 million every day to subsidize petrol and keep the fix retail price of N145 per litre.
Baru, according to a statement, noted that based on the heightened petrol consumption rate of 50 million litre per day, the corporation was incurring an under-recovery of N774 million every day.
The GMD explained that because of the obvious differential in petrol price between Nigeria and other neighboring countries, it had become lucrative for smugglers to use frontier stations as a veritable conduit for the smuggling of products across the border.
He said this had resulted in a thriving market for Nigerian petrol in all the neighouring countries of Niger Republic, Benin Republic, Cameroun, Chad and Togo and even Ghana which has no direct borders with Nigeria.
“’NNPC is concerned that continued cross-border smuggling of petrol will deny Nigerians the benefit of the Federal Government’s benevolence of keeping a fix retail price of N145 per litre despite the increase in PMS open market price above N171 per litre,’’ he said.
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