The end may not be in sight for scarcity of petroleum products especially the Premium Motor Spirit (PMS), otherwise called petrol, as the Nigerian National Petroleum Company Limited, NNPC Limited, has admitted owing its petrol suppliers a substantial amount.
By Emma Ogbuehi
The end may not be in sight for scarcity of petroleum products especially the Premium Motor Spirit (PMS), otherwise called petrol, as the Nigerian National Petroleum Company Limited, NNPC Limited, has admitted owing its petrol suppliers a substantial amount.
NNPC made the disclosure on Sunday in a release by its Chief Communications Officer, Olufemi Soneye.
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Media reports had indicated earlier that the debt which has risen to $6 billion has seen suppliers reduce the volume given to the Nigerian national oil company. The short in supply has led to a six-week long petrol scarcity across the country.
Soneye in the statement said the debt has posed a significant financial strain on NNPC operations
“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”, he stated.
The company did not give a timeline on when the scarcity regime would be brought to an end. In the last six weeks, Nigerians have been going through excruciating fuel scarcity that has affected businesses and vehicular movements. Cashing in on the situation, independent petroleum markets have hiked prices of their products. Reports indicate that in some parts of the country, the product sells between N800 and N1,200 a litre. Black marketers have also latched on the situation to hawk the product on major highways at exorbitant rates.
