Fuel price to go up as NNPC confirms financial strain

The Nigerian National Petroleum Company, NNPC, has confirmed that it is facing financial strain, which may lead to an increase in fuel prices. This news comes as a concern to many Nigerians who are already struggling with the high cost of living.
According to a statement posted on X by the Chief Corporate Communications Officer, NNPC, Olufemi Soneye, the state-owned energy company is strained by fuel supply costs.
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.
In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
Meanwhile, the Nigerian National Petroleum Company Limited, NNPCL, had in August attributed the problem of fuel scarcity to “distribution challenges”
Allnews.ng gathered that commencing in early July, this is the third significant fuel crisis incident in 2024. The NNPCL first attributed the shortfall to logistical problems with the oil transfer from mother boats to daughter vessels.
The company reported that recent thunderstorms and unfavourable weather had caused ship-to-ship, STS, transfers to be disrupted.
NNPCL claims that these conditions caused supply chain disruptions by interfering with truck load-outs, berthing at jetties, and fuel transfer to filling stations.
Soneye said: “The NNPC Ltd regrets the tightness in fuel supply witnessed in some parts of Lagos and the FCT, which is a result of distribution challenges.
“The Company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy.”

source: allnews.ng

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