Home Business Fuel Scarcity: NNPC Admits $6bn Debt, Hints at Price Hike
Business

Fuel Scarcity: NNPC Admits $6bn Debt, Hints at Price Hike

Share
NNPC Announces New Template For Fuel Price in Nigeria
Share

 

 

The Nigerian National Petroleum Company Limited has finally admitted that it owes petrol suppliers $6bn, a debt that has led to fuel scarcity and long queues at filling stations across the country.

ATTENTION: Click HERE to join our WhatsApp group and receive News updates directly on your WhatsApp!

 

In a statement on Sunday, the NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, said the company was facing financial strains due to the debt, which has impacted supply sustainability.

 

The admission comes after weeks of denial by the NNPC, and it hints at a possible price hike in the future.

 

“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” Soneye said.

 

The debt has led to a shortage of petrol, with many filling stations owned by independent marketers selling the product at higher prices, ranging from N900 to N1,000 per litre.

 

The NNPC has been the sole importer of petrol, and the Federal Government has been paying the company to sell fuel to Nigerians at a subsidised rate.

 

However, the failure of the government to pay the shortfall has led to incessant fuel scarcity across the nation, with the debt to international oil companies piling up.

READ ALSO: Police Apprehend Gun Runners, Armed Robbers in Katsina

The situation has led to calls for the government to either remove the fuel subsidy or pay the shortfall, as the partial deregulation has created a disparity in the price of petrol, with NNPC retail stations selling at lower prices than independent marketers.

 

“The Federal Government and the NNPC should just do this thing once and for all. If they want to deregulate, let them deregulate fully, because we know where we are going; that’s why you’re seeing this disparity whereby the NNPC retail is selling at N580 in Lagos and independent marketers will be selling at N800,” said Hammed Fashola, National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria.

 

 

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles
Business

Naira Currency Appreciates Against US Dollar Amid Policy Reforms

The Nigerian currency, Naira, has appreciated by ₦4.59 against the US dollar,...

Business

Mauritania’s Sidi Ould Tah Elected AfDB President, Pledges to Boost Africa’s Growth

Sidi Ould Tah from Mauritania has been elected as the ninth president...

Business

NLO Slaps Two-Year Ban, Heavy Fines on Four Clubs for Match-Fixing

NLO player ban: Upholding Integrity on the Pitch. How the Suspensions Reshape...

Tinubu signs approval
Business

Tinubu Seeks NASS Approval for $21.5bn External Loan and $2bn Forex Bond Amid Debt Concerns

President Bola Ahmed Tinubu has formally requested the National Assembly’s approval for...

5win
RocketplayRocketplay casinoCasibom GirişJojobet GirişCasibom Giriş GüncelCasibom Giriş AdresiCandySpinzDafabet AppJeetwinRedbet SverigeViggoslotsCrazyBuzzer casinoCasibomJettbetKmsauto DownloadKmspico ActivatorSweet BonanzaCrazy TimeCrazy Time AppPlinko AppSugar rush