The price of petrol in Nigeria might soon go up as the Nigerian National Petroleum Company Limited (NNPCL) grapples with financial challenges. On Sunday, NNPCL spokesperson, Olufemi Soneye, confirmed that the company is feeling the strain of high fuel supply costs. This situation has put a lot of pressure on the company, threatening its ability to keep fuel supplies stable.

The problem is tied to a massive $6.8 billion debt that NNPCL owes to international oil suppliers. This debt has contributed to the ongoing fuel shortages across the country. As the sole supplier of Premium Motor Spirit (PMS) in Nigeria, NNPCL’s financial troubles could lead to an increase in the pump price, which is currently between N617 and N720 per litre.

Although NNPCL has consistently denied paying fuel subsidies, it recently admitted that it has been covering the shortfall between the cost of importing PMS and what the federation pays. This has only added to the company’s financial burden.

In response to the situation, MS Ingawa, an aide to the Minister of Housing and Urban Development, Ahmed Dangiwa, suggested that NNPCL has a few options to address the issue. These options include raising the pump price of PMS or selling some of its assets or equity to generate funds to pay off debts and better plan for the future.

As Nigeria continues to navigate these challenges, the potential increase in petrol prices could have significant effects on the economy and daily life for many Nigerians. The coming weeks will likely bring more clarity on how NNPCL plans to manage this crisis.