The Nigerian National Petroleum Company Limited (NNPC Ltd) on Sunday said its ability to sustain regular supply of petrol across Nigeria is under threat.

The oil company said it is under financial duress due to Premium Motor Spirit (PMS) supply costs, impacting supply sustainability.

Also read: NNPC Ltd. denies ongoing petrol subsidy payments

Olufemi Soneye, the chief corporate communications officer of NNPC Ltd, disclosed this in a statement on Sunday.

The NNPC Ltd 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,” Mr Soneye said.

He explained that, in accordance with the Petroleum Industry Act (PIA), 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,” he said.

Fuel scarcity

In recent months, petrol scarcity hit major cities across Nigeria, with attendant effects on businesses and households.

This also prompted commercial bus drivers to increase their fares in major towns and cities, including the nation’s capital. As a result, black marketers made brisk business selling to willing buyers at higher prices ranging from N1,000 to N1,200.

In the wake of the worsening fuel crisis, Mr Soneye told press at the time that the challenge in the supply of petrol currently being experienced in some areas across the country is a result of logistics issues and they had been resolved.

In Abuja, this newspaper found that the long queues in fuel stations reduced significantly in recent days, while prices increased. But the fuel crisis has remained a burden in Lagos and other parts of the country.

Consequently, there has been an attendant increase in transport fares and costs of goods and services.