N1,000/litre: Filling Stations to Adjust Petrol Pump Prices Again as FG Suggests New Pricing
- Petrol prices at filling stations, including outlets owned by NNPC Limited, are expected to increase again
- The National Petroleum Company Limited finally admitted that it was facing challenges due to a $6bn debt.
- The minister of State for Petroleum, Heineken Lokpobiri, has called on the NNPC to make price adjustments as the current pricing encourages smuggling
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Filling stations across Nigeria are expected to adjust petrol pump prices likely above N1,000 as the Nigerian National Petroleum Company (NNPC) Limited grapples with a $6 billion debt.
Source: Getty Images
In a statement on Sunday, September 1, 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.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
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."
Punch reports 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.
Fuel prices in Nigeria
Senator Heineken Lokpobiri, the minister of State for Petroleum (Oil), has also called on NNPC to sell its products based on market prices.
Legit.ng 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).”
Nigerians convert vehicles to use cheaper fuel
Earlier, Legit.ng reported that more Nigerians are turning to Compressed Natural Gas (CNG) to cut fuel expenses, as petrol prices have increased in the past month.
Reports show that some filling stations in certain states ask motorists to pay up to N937 per litre for petrol.
The cheaper fuel alternative, sold at N200, is becoming more attractive to Nigerians.
Proofread by Kola Muhammed, journalist and copyeditor at Legit
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
