Petrol Queues Resurge Amid NNPC Subsidy Payment Delays 

Petrol Queues Resurge Amid NNPC Subsidy Payment Delays 

Motorists across various areas of Lagos found themselves waiting in renewed petrol queues on Thursday, indicating challenges faced by the Nigerian National Petroleum Company Ltd (NNPC) in meeting the nation’s fuel demands……READ ALSO BREAKING: NNPC Reacts To Reports Of New Petrol Pump Price As Fuel Queues Surge

As the sole importer of petrol in the country, NNPC is struggling with delays in subsidy payments, impacting its procurement capabilities.

Traditionally reliant on government subsidies to stabilize petrol prices, NNPC’s trading arm, NNPC Trade Ltd, is experiencing delays in settling payments to both international and Nigerian trading partners, resulting in financial strains.

Unpaid dues to entities such as Trafigura, PV Oil Singapore PTE Limited, Mercuria, Total, and notable Nigerian traders have significantly hampered NNPC’s ability to import adequate quantities of petrol.

Investigations by BusinessDay reveal that contractual agreements for supplying Nigeria’s petrol, alongside diesel and jet fuel, typically span 90 days. The disruption in this cycle due to NNPC’s cash flow issues has directly led to fuel scarcity and the formation of long queues at petrol stations in Lagos.

A senior executive in Nigeria’s downstream sector commented, “The government is facing challenges in clearing a backlog of subsidy bills for November and December, which has impacted product importation in the last two days. Apart from Ardova, which currently has stocks, some of the major marketers such as NNPC’s retail Limited, Mobil, and TotalEnergies are experiencing low petrol stocks. This explains the scarcity observed in Lagos, which may extend to other states.”

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