Stephen Ukandu, Umuahia
There are fears that the pump price of petrol may hit up to N1,500 per liter as indications emerge that the Federal Government may no longer be able to sustain fuel subsidy following the rising cost of importation of the essential commodity.
Already, petrol sells for between N980 and N1000 in some petrol stations especially in South-East and Northern parts of the country.
Protests, Monday, erupted in Abuja where petrol sold for above N1000, with protesters calling for the immediate dismissal of the Group Managing Director of the Nigerian National Petroleum Corporation Limited, Mele Kyari, over the lingering fuel scarcity in the country.
NNPC is said to be indebted to over $6 billion to fuel importers, and is finding it difficult and almost impossible to clear let alone sustaining further subsidy.
There are fears that the Federal Government may totally abolish all forms of subsidy for fuel, thus, leading to full blown price escalation.
NNPC was said to have informed oil marketers about the financial strain regarding the importation of petrol.
This raised concerns among dealers, who expressed worry over the possibility of a halt in the importation of petrol by NNPC.
NNPC’s spokesperson, Olufemi Soneye, had earlier declared that the national oil company was facing financial strain.
He said: “NNPC Ltd faces financial strain due to PMS supply costs, impacting supply sustainability. 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, 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,” Soneye stated on Sunday.
Recall that the unilateral removal of fuel subsidy by President Bola Ahmed Tinubu during his inaugural speech in May 2023, marked the beginning of the current economic turbulence in the country as prices of other commodities usually revolve around petrol.
