NNPC Backs Tinubu’s Decision On Fuel Subsidy Removal, Warns Against Panic Buying

The Nigerian National Petroleum Company Limited (NNPC Ltd) has expressed its support for President Bola Tinubu‘s decision to remove the subsidy on petrol, commonly known as fuel.

The Group Chief Executive Officer (GCEO) of NNPC Ltd, Mele Kyari stated this during a press briefing on Monday night at the NNPC Ltd. Towers in Abuja, following the president’s pronouncement.

KanyiDaily recalls that Tinubu, during his inauguration as the 16th President of Nigeria on Monday, said the subsidy regime will end with the commencement of his administration.

While addressing journalists, Kyari said that the removal of the fuel subsidy, which has been a financial burden on NNPC’s cash flow, would enable the company to allocate funds more effectively and enhance its operational capabilities.

“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.

In response to concerns regarding queues and scarcity being experienced, Mele Kyari assured the public that NNPC has over 30 days’ worth of petrol storage and supply.

“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 urged Nigerians not to panic or engage in panic buying, as there is no need for excessive purchases, noting that the NNPC Ltd is also monitoring all its distribution networks to ensure compliance.

He also emphasized that as the supplier of last resort, as mandated by the Petroleum Industry Act (PIA), NNPC Ltd will ensure the availability of petrol and other petroleum products.

“The NNPC Ltd. 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,” he added.

KanyiDaily recalls that former President Muhammadu Buhari set June 2023 as the date for the removal of fuel subsidy, stressing that the cost was no longer sustainable considering the current fiscal impact.