Filling stations across Nigeria are expected to adjust petrol pump prices as the Nigerian National Petroleum Company (NNPC) Limited grapples with a $6 billion debt.
In a statement on Sunday, the state-owned energy company confirmed it was experiencing financial strain due to unpaid debts to petrol suppliers.
NNPC, which is the sole importer of petrol, acknowledged that this has worsened the lingering fuel queues across the country.
Part of the statement reads: “NNPC Ltd has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers.
“This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.”
Report reaching us shows that NNPC might be considering halting the payment of unsustainable shortfalls, which would likely result in an increase in petrol prices above N1,000 per litre.
Senator Heineken Lokpobiri, the Minister of State for Petroleum (Oil), has also called on NNPC to sell its products based on market prices.
It is reported that Nigerians are buying fuel for as low as N564 at NNPC filling stations in Lagos and slightly above N600 in other parts of the country.
This is over N300 cheaper compared to fuel prices at Independent Marketers’ filling stations.
Lokpobiri believes that the low prices quoted by NNPC are an incentive for smuggling of petrol to neighbouring countries for high-profit making by those involved in the shady business.
His words: “If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop.
“When smugglers are taking the products outside the country, even if you put all the policemen on the road, they are Nigerians; you and I know the answer (response).”
