NNPCL Raises Petrol Prices Amidst $6 Billion Debt, Fuel Supply Crisis Intensifies
In a significant development, the Nigerian National Petroleum Company Limited has reportedly increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, across the nation. Unofficial reports indicate that prices have soared to as much as N855 per litre in Lagos and N925 per litre at filling stations in Port Harcourt, Rivers State. Some independent marketers have even raised their prices to over N1,000 per litre.
While the hike has not been officially confirmed, insiders suggest that the surge is due to the rising landing costs of fuel, now reportedly exceeding N1,000 per litre. This increase comes just 48 hours after NNPCL disclosed a significant financial strain, revealing that it owes fuel importers over $6 billion.
The company’s Chief Corporate Communications Officer, Olufemi Soneye, explained that the company has been absorbing a N500 per litre subsidy on pms for the past year, a situation he described as unsustainable. Soneye emphasized the growing burden on the company, stating, “The landing cost is N1,100; that shortfall is what we have been bearing.”
Amidst these challenges, NNPCL is set to become the exclusive buyer of products from the Dangote Refinery as the 650,000-barrel-per-day plant begins operations. However, with the worsening fuel supply crisis and escalating debt, the situation remains precarious. The final decision on the way forward now lies with the stakeholders and the federal government.
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