Nigeria’s fuel crises set to worsen as price inches to N1000 per liter

Billy Gilly-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, warned of a further hike in the price of premium motor spirit (PMS), commonly known as petrol, as reported by the Punch.

He noted that the current price of petrol which he tagged at N600 per liter is proving unsustainable given the struggle of the Nigerian National Petroleum Company Limited (NNPC) with the commodity’s supply.

“We’ve been raising alarms that the NNPC has been selling products at ₦590 per liter. But the question is, who is bearing the brunt? We can’t continue to play politics with everything; the reality needs to be addressed,” he said during an interview on Channels Television.

“My advice to Nigerians is to brace themselves to buy petroleum products at prices dictated by market forces. While we recognize that fuel subsidies exist globally and that oil and gas are natural blessings for Nigerians, we must weigh the benefits of subsidizing PMS against other pressing challenges, such as health,” he added.

Another report also disclosed that petrol pump prices may surge over N1,000/liter in filling stations, as the commodity’s cost in certain private depots has jumped to between N920 and N950/liter.

On Sunday, Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd confirmed that the NNPC owed about $6 billion to suppliers of petrol, while acknowledging articles in national publications about the company’s large debt to fuel suppliers.

Soneye also spoke about sustainability, noting that the financial strain had put significant burden on the corporation and presented a danger to the sustainability of gasoline supplies.

“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,” he said.

Soneye pointed out that the corporation was actively cooperating with key government authorities and other stakeholders to ensure a continuous supply of petroleum products across the country.