The Nigerian National Petroleum Company Limited (NNPCL) has warned Nigerians against panic buying of Premium Motor Spirit (PMS) also known as petrol, says it supports President Bola Ahmed Tinubu over his decision to remove subsidy.
Tinubu in his inaugural speech at the Eagle Square in the Federal Capital Territory (FCT), Abuja on Monday after he was sworn in as Nigeria’s 16th President said the era of subsidy payment on fuel has ended.
Grow your business with us
According to him the 2023 Budget made no provision for fuel subsidy and more so, subsidy payment is no longer justifiable.
He stated that his government shall instead channel funds into infrastructure and other areas to strengthen the economy.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor,” Tinubu said.
“Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”
After an emergency meeting also in Abuja, the Group Chief Executive Officer (GCEO) of NNPC Limited, Mallam Mele Kyari, noted that the removal of subsidy, which had been a burden on the NNPCL cash flow, will free up funds to enable optimal operations in the company.
Reacting to the fuel scarcity already being experienced in almost every part of Nigeria after Tinubu’s pronouncement, Kyari assured Nigerians of sufficient supply of the product.
“There is no reason to panic, we understand that people will be scared of potential changes in price of petrol, that is not enough for people to rush to buy more than they need,” he added.
Kyari, however, appealed to Nigerians not to be scared or indulge in panic buying, adding that the company has over 30 days of PMS storage and supply.
He added that the company as the supplier of last resort as mandated by the Petroleum Industry Act would continue to ensure availability of PMS and other petroleum products.
According to him, the NNPCL is also monitoring all its distribution networks to ensure compliance.
“The NNPC Limited is in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop framework of the implementation of the removal of the PMS subsidy as announced by the president.”