The Nigerian National Petroleum Company Limited (NNPCL) has admitted facing severe financial constraints due to the high cost of fuel supply, raising concerns that petrol prices may rise.
The company’s spokesperson, Olufemi Soneye, confirmed on Sunday that NNPCL’s financial strain threatens the sustainability of fuel supply in the country.
This acknowledgment aligns with reports that the ongoing fuel scarcity is partly due to NNPCL’s $6.8 billion debt to international oil suppliers.
Currently, NNPCL is the sole supplier of Premium Motor Spirit (PMS) in Nigeria, selling the product at between N617 and N720 per liter, a price point that may no longer be feasible.
The Major Energy Marketers Association of Nigeria (MEMAN) had previously revealed that the landing cost of petrol was N1,117 per liter in July, underscoring the financial burden on NNPCL.
Although the company has denied paying subsidies, it has admitted to covering the shortfall between importation costs and sales prices.
In response, an aide to the Minister of Housing and Urban Development, Ahmed Dangiwa, suggested that NNPCL could consider increasing the pump price or raising funds through asset sales to manage the debt and plan better for future fuel supply.
