Exposed! Real reasons Nigerians are suffering from fuel scarcity

• NNPC LTD has stated that company is experiencing financial difficulties right now
• This is because the expense of supplying gasoline is affecting the sustainability of the supply
• The Company is under a great deal of pressure due to this financial strain which threatens fuel supply

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian National Petroleum Company Limited (NNPC LTD) has confirmed that it currently faces financial strain due to the supplying cost of petrol which it said is impacting supply sustainability.

To maintain national energy security, the NNPC is committed to fulfilling its position as the supplier of last resort. Photo Credit: Bloomberg/Contributor
Source: UGC

The company disclosed this in a statement signed by Olufemi Soneye, the chief corporate communications officer, NNPC Ltd.

It stated that in line with the Petroleum Industry Act (PIA), BusinessDay reported that the company remains dedicated to its role as the supplier of last resort, ensuring national energy security.

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“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide. “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 threatens the sustainability of fuel supply,” the statement read.

Earlier, the National Oil and Gas Suppliers Association of Nigeria (NOGASA) urged the Nigerian government to implement its policy of selling crude oil in Naira.

The association believes the policy is crucial in addressing the scarcity of Premium Motor Spirit (PMS), commonly known as petrol and also prices.

Benneth Korie, the national president of NOGASA, who made the remarks in a press briefing on Wednesday, August 28, 2024, in Abuja, stressed the importance of the crude oil sale in naira policy in stabilising the fuel market.

Experts speak on unauthorised fuel price

Legit.ng reported that in Nigeria, selling Premium Motor Spirit (petrol) in jerrycans has grown commonplace, particularly when the product becomes hard to get in authorised retail outlets. Experts claim that this is an unlawful petrol trade that demonstrates the government's lax regulatory actions.

BusinessDay investigations have revealed that black marketers, who are primarily positioned near filling stations, sell their gasoline for far more than what the stations sell it for, even though filling stations sell it for between N617 and N690 per litre.

For instance, black marketers in the federal capital territory of Garki, near Lokogoma Junction and the NNPC towers, charge N1000 per litre.

Source: Legit.ng