Amid prolonged fuel scarcity in the country, the Nigerian National Petroleum Corporation, NNPC, on Sunday admitted that it is in financial distress due to Premium Motor Spirit costs and growing debt to petrol suppliers.
“NNPC Ltd faces financial strain due to PMS supply costs, impacting supply sustainability,” NNPC noted in a statement by Olufemi Soneye, its chief corporate communications officer.
It disclosed that debt to petrol suppliers constitute a financial burden that could affect sustainable fuel supply in the country.
“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,” the statement said.
It added that “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.”
READ ALSO: NNPC seeks top firms for operations, maintenance of Warri, Kaduna refineries
This comes amid lingering fuel scarcity in the country that has seen Nigerians stay for hours on queues to get fuel.
In recent months, fuel scarcity hit major cities across Nigeria, with attendant effects on businesses and households.
This also prompted commercial bus drivers to increase their fares in major towns and cities, incuding the nation’s capital. As a result, black marketers made brisk business selling to willing buyers at higher prices ranging from N1,000 to N1,200.
In the wake of the worsening fuel crisis, Mr Soneye disclosed that at the time that the challenge in the supply of petrol currently being experienced in some areas across the country is a result of logistics issues and they had been resolved.
However in Abuja, the long queues in fuel stations reduced significantly in recent days, while prices increased. But the fuel crisis has remained a burden in Lagos and other parts of the country.
Consequently, there has been an attendant increase in transport fares and costs of good and services.
Credible News.ng
