NNPCL supports Tinubu on Fuel Subsidy Removal, Warns against Panic Buying

The Nigerian National Petroleum Company Limited (NNPCL) has thrown its weight behind President Bola Ahmed Tinubu over his decision to remove subsidy on Premium Motor Spirit (PMS) also known as petrol.

President Tinubu said 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 the era of subsidy payment on fuel is gone.

He disclosed that the 2023 Budget made no provision for fuel subsidy and so subsidy payment is no longer justifiable.

He posited that his government will instead channel funds into infrastructure and other areas to strengthen the economy.

Tinubu said “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.

“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.”

Meanwhile, the Group Chief Executive Officer (GCEO) of NNPC Limited, Mallam Mele Kyari, after an emergency meeting in Abuja, stated 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.

Kyari assured Nigerians of sufficient supply of the Premium Motor Spirit (PMS) also known as petrol, while reacting to the fuel scarcity already being experienced in almost every part of Nigeria after Tinubu’s pronouncement.

Kyari said “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 advised Nigerians not to be scared or indulge in panic buying, adding that the company has over 30 days of PMS storage and supply.

According to him, 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.

The NNPCL, he said 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,” he added.