NNPCL Absolved of Blame over Lingering Fuel Crisis
The Nigerian National Petroleum Company Limited (NNPCL) has been absolved of wrongdoing amid the ongoing fuel crisis in Nigeria.
During a recent media interaction in Uyo, Akwa Ibom State, the Head, NNPC Media Team, Mr Solomon Oseagah, emphasized that the crisis is multifaceted, involving various factors beyond the control of NNPCL.
The spokesperson acknowledged the significant reforms implemented by the GCEO, Mele Kyari aimed at transforming the petroleum sector, despite widespread criticism directed at the company. “Many Nigerians may not fully understand the complexities of fuel production and distribution, leading to misplaced blame on NNPCL,” he said.
He explained that while NNPCL plays a crucial role in the sector, the crisis is influenced by structural, political, and economic factors that are often overlooked. “Understanding these complexities is vital for a fair evaluation of the situation,” Oseagah noted
Addressing the tensions with Dangote Refinery, he stated that the Nigerian government has granted necessary licenses and support for the refinery’s operations, countering claims that NNPCL is attempting to hinder its success.
Regarding fuel subsidies, the spokesperson confirmed that the government ceased subsidy payments for PMS in 2023 and NNPCL has been subsidizing import costs from its profits at the government’s directive for intervention, but this intervention has ended due to financial constraints, contributing to rising fuel prices.
He asserted that the company should not be blamed for pump price increases, as various factors—including global oil prices and forex fluctuations are major determinants and are beyond its control of NNPCL.
“The reliance on imported refined petroleum products and challenges with forex shortages further complicates the situation,” he stressed.
The spokesperson added by noting that government policies on fuel subsidies have historically affected petrol availability and pricing maintaining that sudden policy changes can lead to supply shortages and public panic.