The Nigerian National Petroleum Company (NNPC) Limited has acknowledged experiencing financial difficulties due to the expenses involved in supplying Premium Motor Spirit (PMS), commonly referred to as petrol or fuel.
Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Limited, revealed this in a statement issued on Sunday. According to Soneye, the financial challenges are exerting significant pressure on the company and jeopardizing the sustainability of fuel supply throughout the country.
Despite various interventions, fuel queues persist, particularly in Lagos State and Abuja, the Federal Capital Territory (FCT), with the NNPC at one point attributing the queues to the rainy season.
Industry experts noted that as of the end of July 2024, the landing cost of petrol was N1,100 per litre, not including the additional costs of transporting the product to retail stations. The official pump price of petrol is approximately N600 per litre. Energy sector specialists have suggested that the rising landing costs could prompt marketers to raise pump prices.
