The Nigerian National Petroleum Company Limited (NNPCL) says the decision to remove subsidy on Premium Motor Spirit (PMS), popularly called petrol, by President Bola Tinubu is a welcome development.
Group Chief Executive Officer of the NNPCL, Mele Kyari, made this known while speaking with journalists in Abuja on Monday night.
Tinubu, at his inauguration as the President of Nigeria on Monday, said the subsidy regime will end with the commencement of his administration.
However, Kyari said the removal of the subsidy which had been a burden on NNPC’s cash flow would free up funds to enable optimal operations in the company.
“Subsidy has been a major challenge for NNPC’s continuous operations, we believe that this will free up resources to enable us continue to do great work and function as a commercial entity, we welcome this development,” he said.
Reacting to queues and scarcity already being experienced, the NNPCL boss assured Nigerians of sufficient supply of products particularly petrol, adding that the company has over 30 days of PMS storage and supply.
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“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,” Kyari stated.
The NNPCL boss, who appealed to Nigerians not to be scared or indulge in panic buying, said the company as the supplier of last resort as mandated by the Petroleum Industry Act (PIA) would continue to ensure the availability of petrol and other petroleum products.
He stated that the NNPCL is also monitoring all its distribution networks to ensure compliance.
“The NNPCL is in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop framework for the implementation of the removal of the PMS subsidy as announced by the president,” Kyari added.
Former President Muhammadu Buhari set June 2023 as the date for the removal of fuel subsidy.
The Federal Government had explained that if it continues to service the subsidy, the country will spend N6.4 trillion annually.
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