NNPCL Outburst Intended To Announce Price Increase – Experts

Experts in the oil industry have disclosed that the Nigeria National Petroleum Company Limited (NNPCL) has a plan to announce price increase for petrol.

Naija News reported that NNPCL on Sunday, in a statement, stated that financial strain was responsible for the current fuel scarcity experienced in the country.

In the statement titled ‘NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability’, the sole importer of petrol into the country admitted after many denials that financial strains have placed a heavy burden that posed a threat to sustainability of fuel supply.

“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,” the statement signed by its Chief Corporate Communications Office, Olufemi Soney, read.

In an interview with Daily Trust, the Chief Executive Officer of 11 Plc (formerly Mobil Nigeria), Tunji Oyebanji, said NNPCL has been living in self-denial.

Oyebanji explained that NNPCL’s continued selling below the supply cost while at the same time denying cannot be sustainable.

“Selling below the cost, whether from import or local refineries, is not sustainable. If they sell at economic price, perhaps others can import, supply will improve, and the financial strain will not be on them alone. It’s either that or these supply disruptions will continue indefinitely. I am baffled why they have not been upfront about this since instead of denials,” Oyebanji said.

Another independent marketer who spoke with Daily Trust, on condition of anonymity, pointed out that one of the reasons why the price of petrol would rise was because of low crude output.

“It was almost inevitable for the pump price to not rise, as this is one of the outcomes of a fully deregulated market.

“The NNPCL remains the main importer, with private importation remaining limited. This situation is worsened by Nigeria’s declining crude oil output, which impacts the country’s capacity to import refined products.

“The Organisation of Petroleum Exporting Countries (OPEC) has noted the dwindling output of many nations, including Nigeria,” the marketer said.