We're in debt, can't guarantee regular fuel supply – NNPC – Newstrends
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We’re in debt, can’t guarantee regular fuel supply – NNPC

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We’re in debt, can’t guarantee regular fuel supply – NNPC

The Nigerian National Petroleum Company Limited has said its ability to meet the daily fuel demand and consumption in the country is severely threatened.

The company attributed the troubling development to the massive debt it owed petrol suppliers, saying the difficulty financial situation it finds itself is hampering its ability to meet its fuel supply obligations.

Reports had previously emerged that a $6 billion debt the NNPCL owes petrol suppliers has aggravated petrol scarcity in Nigeria, a perennial feature since the beginning of 2024.

The NNPCL on different occasions had blamed logistics challenges, and flooding, amongst others factors for the supply shortages of the essential commodity.

However, in a statement on Sunday, NNPCL spokesman Olufemi Soneye finally admitted the company’s “significant debt to petrol suppliers”

He said: “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 (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.

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“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.”

Nigeria, Africa’s most populous nation, faces energy challenges, with all its state-owned refineries moribond. The country is heavily dependent on imported refined petroleum products, with the state-run NNPC being the major importer of the essential commodities.

Fuel queues are commonplace in the country. Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to about ₦800/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.

The government simultaneously unified forex windows, with the value of the naira nosediving terribly from $1/₦700 to over $1/₦1600 at the parallel market. Prices of food and basic commodities immediately climbed through the roof as Nigerians battled attendant inflation.

Recently, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the landing cost per litre of petrol has made it impossible for petrol marketers to import the essential commodity just as being done by the NNPCL.

“Right now, the landing cost of PMS is over ₦1,200, without the margin of the marketers, transportation and other logistics,” said IPMAN National Operations Controller, Zarama Mustapha.

“NNPC sells to marketers at ₦565 or so. That means there is a subsidy of almost ₦600 to ₦700 as of now.

“Whether they (government officials) say there is subsidy or there is not subsidy, the fact on the ground clearly states that there is something they are under-recovering.”

We’re in debt, can’t guarantee regular fuel supply – NNPC

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NNPC hints petrol may rise above N1,000/litre, releases fresh price list

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NNPC hints petrol may rise above N1,000/litre, releases fresh price list

The Nigerian National Petroleum Company Limited (NNPCL) has hinted that the price of premium motor spirit (PMS), also known as petrol, may rise above N1,000 per litre in its retail stations.

In a notice on Monday, NNPC Ltd released estimated prices of petrol (obtained from the Dangote Refinery based on September 2024 pricing) in its retail stations across the country.

According to the notice, the estimated pump prices include Lagos, N950 per litre; Sokoto, N992 per litre; Oyo, N960 per litre; Kano, N999 per litre; Kaduna, N999 per litre; FCT, N992 per litre; Rivers, N980 per litre; and Borno, N1019 per litre.

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The company said in line with the provisions of the Petroleum Industry Act (PIA), petrol prices are not set by the government, but negotiated directly between parties.

“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.

“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.” the notice said.

NNPC hints petrol may rise above N1,000/litre, releases fresh price list

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Dangote Refinery: Tinubu committee to announce petrol price on October 1

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Dangote Refinery: Tinubu committee to announce petrol price on October 1

Dangote Group has responded to reports claiming that it sold premium motor spirit (PMS) to the Nigerian National Petroleum Company Limited (NNPCL) at N898 per litre, calling the reports “misleading and malicious.”

In a statement issued by Chief Branding and Communication Officer Anthony Chiejina, Dangote Group did not confirm the specific price at which the product was sold, only stating that it was sold in dollars.

Olufemi Soneye, the NNPCL’s chief spokesperson, had previously stated that the company purchased the PMS at N898 per litre, correcting an earlier report that suggested the price was N760 per litre.

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Dangote’s statement criticized Soneye’s report as intentionally misleading, aimed at undermining the achievement of the Dangote Refinery’s recent milestone in addressing Nigeria’s energy challenges. The statement urged Nigerians to disregard the misleading claims and wait for the official price announcement from the Technical Sub-Committee on Naira-based crude sales to local refineries, which will be made on October 1, 2024.

The statement further emphasized that the refinery sold the product to NNPCL in dollars, offering significant savings compared to current import prices, and reassured that the refinery would help alleviate fuel scarcity across Nigeria by ensuring availability in every local government area.

Dangote Refinery: Tinubu committee to announce petrol price on October 1

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JUST IN: Northern regions to pay more for petrol after NNPC announces Dangote price

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Dangote Refinery, Aliko Dangote

JUST IN: Northern regions to pay more for petrol after NNPC announces Dangote price

The Nigerian National Petroleum Company Limited (NNPCL) has announced that petrol sourced from the Dangote Refinery will be sold at prices exceeding N1,000 per litre in northern Nigeria.

According to a statement by NNPC spokesperson Olufemi Soneye, the cost of petrol could reach N1,019 per litre in Borno State and N999.22 in cities such as Abuja, Sokoto, and Kano.

In contrast, the price for petrol in southern regions, including Oyo and Rivers states, will be approximately N960 per litre. Lagos and its surrounding areas will see the lowest price, set at N950 per litre.

The announcement, made in a statement titled ‘NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’, provides an overview of the anticipated retail prices across the country.

“The NNPC Ltd has released estimated prices of Premium Motor Spirit, also known as petrol (obtained from the Dangote Refinery) in its retail stations across the country.

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“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government, but negotiated directly between parties at an arm’s length,” he stated.

The company explained that the product it loaded on Sunday was paid for in dollars.

“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as naira transactions will only commence on October 1, 2024.

“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 per cent to the general public,” the statement added.

He stated that the estimated pump prices of PMS were obtained from the Dangote Refinery and will be across NNPC retail stations in the country, based on September 2024 pricing.

Recall that the Dangote Group had disagreed with the NNPC on Sunday that it was selling PMS at N898, but it failed to release its price list.

JUST IN: Northern regions to pay more for petrol after NNPC announces Dangote price

(Punch)

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