Petrol price: Fresh crisis looms as NNPCL admits financial constraints
The pump price of Premium Motor Spirit (petrol) may rise as the Nigerian National Petroleum Company, NNPCL, has admitted financial constraints.
NNPCL’s spokesperson, Olufemi Soneye admitted on Sunday that the firm was strained by fuel supply costs.
The company stressed that “This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply”.
The admittance confirmed a report that the prolonged fuel scarcity across the country is caused by the $6.8 billion debt owed by NNPCL to international oil suppliers.
The development indicates that the NNPCL, which is the sole supplier of PMS in Nigeria, may not continue to sell the product between N617 and N720 per litre.
Recall that the Major Energy Marketers Association of Nigeria (MEMAN) in July said that the landing cost of petrol was N1,117 per liter.
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.
