Government has reiterated its difficulties in settling outstanding payments to oil companies, as rising global crude oil prices continue to strain the National Petroleum Fund (NPF). Speaking in Parliament, Minister of Minerals and Energy Bogolo Kenewendo said the fund has disbursed over P262 million in fuel subsidies over the past three months but still owes oil companies about P350.6 million in outstanding claims.
She said the NPF is struggling to fully cushion pump prices amid persistent increases in global oil prices, largely driven by geopolitical tensions in the Middle East. While the fund continues to support consumers, the rising cost of fuel imports has limited its ability to stabilise prices and meet supply obligations.
Kenewendo noted that although there has only been one upward fuel price adjustment in the 2025/26 financial year, in September 2025, underlying pressures have remained. Between June and September, import costs exceeded regulated prices, resulting in a cumulative debt of over P544 million due to delayed price adjustments.
The NPF has been absorbing these price differences to shield consumers, accumulating more than P150 million in recent months to offset rising costs. However, the pressure has intensified as global oil prices remain elevated.
The minister said recent pump price adjustments made at the end of March 2026 will continue to be supported by the fund, despite ongoing cost pressures. Fuel has been imported at higher prices while being sold below cost for several weeks, widening the gap between actual and regulated prices.
For March alone, under-recoveries are estimated at P714 million, reflecting the scale of the subsidy burden. The growing debt highlights the challenge facing government in balancing fuel subsidies with volatile global oil markets, while maintaining energy security and protecting consumers.