The pump price of Premium Motor Spirit (petrol) may rise as the Nigerian National Petroleum Company, NNPCL, admits to financial difficulties. According to Bizwatch Nigeria, NNPCL’s spokeswoman, Olufemi Soneye, revealed on Sunday that the company was struggling due to high gasoline supply costs.
The business stated: “This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.” .
The admission verified a rumor that the protracted gasoline scarcity in the country is caused by NNPCL’s $6.8 billion debt to international oil suppliers.
The development suggests that NNPCL, Nigeria’s sole supplier of PMS, may no longer offer the product for N617 to N720 a 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.
