Ogasabi on 9am news revealed that the pump price of premium motor spirit (petrol) may increase at filling stations as the Nigerian National Petroleum Company Limited (NNPC) acknowledged its financial challenges due to a $6bn debt. The NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed the debt’s impact on fuel supply, stating that financial strains were affecting supply sustainability. This disclosure followed weeks of denial and highlighted the difficulties NNPC faces in covering the gap between fixed pump prices and international fuel costs.
9am news Nigeria had previously reported that Nigeria’s debt to petrol suppliers had surpassed $6bn, causing the NNPC to struggle with payments. Some suppliers have already ceased deliveries due to unpaid debts, further aggravating the supply issues. Although NNPC had earlier denied owing $6.8bn to international traders, it admitted on Sunday that financial pressures were indeed affecting operations.
This admission by the NNPC, as reported by 9am news Nigeria, has fueled speculations that the Federal Government might stop subsidizing petrol, a move that could lead to a price hike above N1,000 per liter. Such a decision could allow accredited marketers to import petrol, potentially ending NNPC’s monopoly on fuel supply. Breaking news from Ogasabi on 9am news suggests that if this policy change occurs, it could significantly alter the dynamics of Nigeria’s fuel market.
