NNPC increases price of PMS to N897/litre

 

Nigerians are in for more hardship as the Nigerian National Petroleum Company Limited (NNPCL), on Tuesday, announced an increase in the pump price of the Premium Motor Spirit (PMS), otherwise called petrol. The hike, has taken rate for petrol price from N617/itre to N897/liter

 

 

A short statement from the NNPCL noted: “This is to inform you that NNPC Retail Management has approved upward review of PMS pump price from N617/itre to N897/liter effective today, 3rd September, 2024.

 

 

“Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter.”

 

 

The announcement puts paid to insinuations of new price regime for the product. It also confirms the fears that the end may not be in sight for scarcity of products, as the NNPCL has admitted owing its petrol suppliers a substantial amount.

 

 

NNPCL made the disclosure on Sunday in a release by its Chief Communications Officer, Olufemi Soneye. It was gathered that the debt which has risen to $6 billion has seen suppliers reduce the volume given to the Nigerian national oil company. The short in supply has led to a six-week long petrol scarcity across the country.

 

 

Soneye in the statement said the debt has posed a significant financial strain on NNPCL operations.

 

 

Notwithstanding, the Federal government had earlier on Tuesday denied reports on social media suggesting that the Ministry of Petroleum had ordered NNPCL to sell fuel at N1000, above the approved pump price.

 

 

The government, in a statement on Tuesday, signed by Nnemaka Okafor, Special Adviser to the Minister of State for Petroleum, rubbished the report, noting that it was concocted and ill-conceived to sow discord and confusion in the oil industry.

 

 

According to Nnemaka, ‘there was never a time FG interfered with petroleum pricing with NNPCL, let alone give directives for price increment.

 

 

She said, “The Federal Government is compelled to address the outright falsehoods currently being circulated on social media, which claim that the Honourable Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has directed the Nigerian National Petroleum Company Limited (NNPCL) to inflate petroleum prices above the approved pump price.”

 

 

“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent.”

 

 

“We challenge anyone in possession of any evidence-be it written documents, audio, or video recordings-that supports these fabrications to make it public.”

 

 

“Such a claim is entirely devoid of truth and should be recognized as an intentional effort to mislead the public.”

 

 

“It must be stressed that NNPCL operates as an independent entity under the Companies and Allied Matters Act (CAMA), with a fully empowered Board of Directors. “

 

 

“The Ministry of Petroleum Resources does not, and will not, interfere in the internal decisions of NNPCL, including pricing matters. Any suggestion otherwise is incorrect and reveals a profound misunderstanding of the deregulated nature of Nigeria’s petroleum sector.”

 

 

The story, she claimed, was taken out of context to cause panic. According to her, the Minister of Petroleum, Lokpobiri, merely elaborated on why fuel smuggling and pipeline vandalism cannot stop, when he said “If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop”.

 

 

The new price hike is expected to spike costs of food items, transport fares and other services.