The Nigerian National Petroleum Company Limited, NNPC Ltd, says “delaying subsidy removal till the end of June 2023 could have caused serious nationwide fuel scarcity and hardship.”
The company, in a series of posts on its Facebook page explaining its position on subsidy removal and petroleum price hike, on Saturday, said “NNPC Ltd was owed over N2.8 trillion and can no longer sustain sufficient supply to the market.”
Recall that President Bola Tinubu, in his inaugural speech, announced the removal of fuel subsidy, promoting the hike of petrol prices across the country to between N511 to N650, from the old price of N295.
According to the company, old stock was sold at the new price because “fuel stations cannot restock if they sell at old price and nationwide scarcity will manifest if they do.”
It noted that following the full deregulation of the downstream sector, NNPC Ltd. will no longer be the sole supplier of petrol, adding that by law, no player can control more than 30 per cent of the market.
The company did not however explain the legal instrument it relied upon to become the sole supplier of petrol before now.
On the current prices of fuel, it stated that NNPC Ltd. does not fix petrol price for the industry.
“Like other companies, NNPC Ltd. determines its petrol price as the market dictates. Industry Regulators & Consumer Protection Council will provide control,” it said.
As to whether petrol prices will continue to rise, the company said prices will be determined by market forces and they could also go down
On petrol supply to domestic market, it said Dangote, NNPC & other domestic refineries will ensure petrol availability, improve Nigeria’s foreign exchange reserve, create employment and increase the nation’s Gross Domestic Product, GDP.
