The Nigerian National Petroleum Company Limited (NNPCL) has acknowledged financial difficulties, which may lead to an increase in the pump price of Premium Motor Spirit (petrol). NNPCL spokesperson Olufemi Soneye revealed that the company is facing significant strain from fuel supply costs, threatening the sustainability of its fuel supply. This admission confirms reports that the ongoing fuel scarcity is linked to a $6.8 billion debt NNPCL owes to international oil suppliers. As a result, NNPCL, the sole supplier of PMS in Nigeria, might no longer maintain the current price range of N617 to N720 per litre. Additionally, the Major Energy Marketers Association of Nigeria (MEMAN) noted in July that the landing cost of petrol was N1,117 per litre.
Though NNPCL has repeatedly denied paying fuel subsidies, it has recently admitted that it is only taking care of Premium Motor Spirit (PMS) importation shortfalls between the company and the federation.
Reacting to the development, MS Ingawa, aide to the Minister of Housing and Urban Development, Ahmed Dangiwa said NNPCL has the option of increasing pump price and raising money through asset sale.
“The only immediate options now are: “Increase the pump price of PMS to reduce the burden of subsidy on NNPCL. This will not even bring quick and enough money for NNPCL, or raise money through asset or equity sale to offset debt and properly plan”, he said on his X handle on Sunday.
