PulseNets reports that another surge in fuel prices seems inevitable as the Nigerian National Petroleum Company (NNPC) grapples with an overwhelming debt burden.
The company is currently indebted to petrol suppliers to the tune of $6 billion, and it’s struggling to meet the growing fuel demand.
This mounting debt crisis has sparked long queues at filling stations nationwide, with countless Nigerians enduring hours just to purchase fuel. The situation deteriorates daily, raising concerns that the country could soon face a complete fuel shortage.
In response, the federal government, through the Minister of State for Petroleum, Heineken Lokpobiri, has urged NNPC to revise its pricing strategy to curb smuggling. Lokpobiri told PulseNets that the current pricing structure by NNPC incentivizes smuggling since fuel is priced lower than in neighboring countries.
Also Read: NNPC set to hand over Warri, Kaduna refineries to private operators
“NNPC imports PMS and sells to marketers at perhaps N600 or below; there’s no way that smuggling can stop,” Lokpobiri said. “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.”
PulseNets has also learned that some filling stations in various states are already retailing petrol at nearly N1,000 per liter.
[…] Also Read: NNPC’s $6 Billion Debt Crisis: Looming Fuel Price Hike and Nationwide Shortages […]