In a recent interview with Channels Television, Tonye Cole, co-founder of Sahara Group and the gubernatorial candidate for the All Progressives Congress (APC) in the 2023 Rivers State election, expressed concerns about the Nigerian National Petroleum Company Limited (NNPCL) facing significant pressure regarding fuel subsidy payments and product importation challenges.
Cole’s remarks come amidst the ongoing debate surrounding whether the Nigerian government is actively paying fuel subsidies.
Despite NNPCL’s assertion that it does not directly pay fuel subsidies but addresses importation shortfalls, Cole emphasized the strains faced by the company in ensuring the availability of petrol for the public.
Discussing the issue, Cole mentioned, “NNPC bears a considerable burden in ensuring petrol accessibility to the masses, absorbing the actual costs of petrol products. The ongoing debates about fuel subsidies have placed substantial financial strain on NNPCL, affecting various operational aspects such as cash flow and operational capabilities.”
He further added, “The pressures faced by NNPC are intricately linked to petroleum product importation issues and the ongoing debates surrounding subsidy measures.”
It’s worth noting that President Bola Ahmed Tinubu’s announcement last year regarding fuel subsidy removal resulted in a significant price hike, with petrol costing over N600 per liter compared to the previous N238.
Recent estimates from the Major Energies Marketers Association of Nigeria project the cost of Premium Motor Spirit (PMS) at N1,117 per liter.
Currently, fuel prices reportedly range from N617 to N800 per liter in most filling stations across Nigeria, as per reports by NewsNow.