Nigerians are once again grappling with long queues at petrol stations as the price of fuel skyrockets to N1000 per litre. The surge in petrol prices comes amid severe financial difficulties faced by the Nigerian National Petroleum Company (NNPC), leading to widespread fuel scarcity across major cities, including Lagos and Abuja.
Investigations by BusinessDay reveal that NNPC owes international traders approximately $6 billion for imported petrol, with payment delays stretching beyond the usual 90-day period. This mounting debt has caused international suppliers to pull back from recent tenders, exacerbating the supply crisis and leaving many stations without fuel.
NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, acknowledged the company’s financial strain, attributing it to the costs associated with maintaining petrol supply under the current conditions. Despite the removal of fuel subsidies in May 2023, the reintroduction of an implicit subsidy has further strained NNPC’s finances, threatening the sustainability of its operations.
As Nigerians endure the impact of soaring fuel prices, experts are calling for urgent reforms, including the adoption of a market-based pricing system and reduced government interference in NNPC’s operations. Without these changes, the nation’s energy sector risks continued instability, with fuel scarcity and economic hardship becoming the norm.
Credit: Businessday NG (Text Excluding Headline)
