NNPCL’s Recent Comments Hint At Possible Price Hike, Say Analysts

NNPCL’s Recent Comments Hint At Possible Price Hike, Say Analysts

Experts in the oil industry have suggested that the recent outburst by the Nigeria National Petroleum Company Limited (NNPCL) could be a precursor to an impending petrol price increase…….CONTINUE READING 

According to reports from *Naija News*, NNPCL released a statement on Sunday, attributing the ongoing fuel scarcity in the country to severe financial strain. The statement, titled “NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability,” revealed that the company’s financial challenges are threatening the stability of fuel supply across the nation.

NNPCL, the sole importer of petrol into Nigeria, admitted—after previous denials—that the mounting financial pressure has created a significant burden, endangering the continuous availability of fuel. “NNPC Ltd. acknowledges recent reports in national newspapers about the company’s substantial debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement, signed by Chief Corporate Communications Officer Olufemi Soney, read.

The company emphasized its commitment to national energy security, in line with the Petroleum Industry Act (PIA), and stated that it is actively working with government agencies and stakeholders to ensure a steady supply of petroleum products nationwide.

In an interview with *Daily Trust*, Tunji Oyebanji, the Chief Executive Officer of 11 Plc (formerly Mobil Nigeria), criticized NNPCL for its approach, accusing the company of being in denial. Oyebanji argued that selling petrol below the supply cost is unsustainable. He suggested that if NNPCL were to sell at an economic price, other importers might enter the market, thereby easing the supply issues and reducing the financial burden on NNPCL. “It’s either that or these supply disruptions will continue indefinitely. I am baffled why they have not been upfront about this instead of issuing denials,” Oyebanji remarked.

An independent marketer, who spoke to *Daily Trust* on the condition of anonymity, added that one of the factors driving a potential price hike is Nigeria’s declining crude oil output. “The rise in pump prices seems almost inevitable in a fully deregulated market. NNPCL remains the main importer, with private importation still limited. This situation is exacerbated by Nigeria’s falling crude oil production, which affects the country’s ability to import refined products,” the marketer noted.

The Organisation of Petroleum Exporting Countries (OPEC) has also highlighted the declining oil output in several nations, including Nigeria, further compounding the situation.