See the real cost of petrol as minister suggests new pricing

• Petrol prices at filling stations, including outlets owned by NNPC Limited, are expected to increase again
• This is due to the rising cost of PMS supply, which has led to over $6 billion in debt, affecting fuel supply and causing persistent fuel queues
• Nigerians will now have to brace for an increase in the cost of living as the Minister of Petroleum has demanded new pricing above N600 per litre

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Filling stations across Nigeria are expected to adjust petrol pump prices as the Nigerian National Petroleum Company (NNPC) Limited grapples with a $6 billion debt.

NNPC filling stations to adjust petrol price Photo credit: Benson Ibeabuchi
Source: Getty Images

In a statement on Sunday, the state-owned energy company confirmed it was experiencing financial strain due to unpaid debts to petrol suppliers.

NNPC, which is the sole importer of petrol, acknowledged that this has worsened the lingering fuel queues across the country.

Part of 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."

Punch reports that NNPC might be considering halting the payment of unsustainable shortfalls, which would likely result in an increase in petrol prices above N1,000 per litre.

Fuel prices in Nigeria

Senator Heineken Lokpobiri, the Minister of State for Petroleum (Oil), has also called on NNPC to sell its products based on market prices.

Legit.ng reported that Nigerians are buying fuel for as low as N564 at NNPC filling stations in Lagos and slightly above N600 in other parts of the country.

This is over N300 cheaper compared to fuel prices at Independent Marketers' filling stations.

Lokpobiri believes that the low prices quoted by NNPC are an incentive for smuggling of petrol to neighbouring countries for high-profit making by those involved in the shady business.

His words:

"“If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop.“When smugglers are taking the products outside the country, even if you put all the policemen on the road, they are Nigerians; you and I know the answer (response).”

Nigerians convert vehicles to use cheaper fuel

Earlier, Legit.ng reported that more Nigerians are turning to Compressed Natural Gas (CNG) to cut fuel expenses, as petrol prices have increased in the past month.

Reports show that some filling stations in certain states ask motorists to pay up to N937 per litre for petrol.

The cheaper fuel alternative, sold at N200, is becoming more attractive to Nigerians.

Source: Legit.ng