In separate reactions to President Bola Tinubu’s pronouncement that “fuel subsidy is gone”, the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian Upstream and Midstream Regulatory Authority (NMDPRA), have called for calm, insisting that while there was ‘potential’ change in price, the country had enough stock in its storage facilities.
Emphasising reasons to support the move to eliminate petrol subsidy, the Group Chief Executive Officer (GCEO), NNPCL, Mele Kyari, disclosed that the federal government was indebted to the national oil company to the tune of N2.8 trillion in fuel subsidy payments.
While maintaining that Nigerians should not engage in panic buying of the product, Kyari welcomed the declaration by the new president.
According to Kyari, while the apprehension by petrol consumers was understandable, the potential changes to petrol prices were not enough reason for Nigerians to buy more than they require at a time.
Kyari stated that the NNPC would ensure continuous and sufficient supply of petroleum products, particularly Premium Motor Spirit (PMS), noting that the company was monitoring all its distribution networks to ensure compliance.
“We would like to assure Nigerians that we have sufficient supply of petroleum products, particularly PMS in our country and there is no reason to panic. We understand that people will be scared of potential changes to the price of petrol.
“But that is not enough for people to rush to fuel stations to buy more than what they need. We are watching all the distribution networks, and support facilities and we believe that normalcy will be restored very soon,” he noted.
The NNPC chief executive reiterated that the company had been using some of its cash flow to make subsidy payments which had constituted a huge burden on the company’s finances.
“We welcome the decision of Mr. President to announce that the subsidy on PMS is over and this has really been a major challenge for the NNPC’s continued operation. We have been funding the subsidy from the cash flow of the NNPC.
“We believe that this decision will free resources for the NNPC to continue to do the great works that this company will do for our country. It allows us to continue to function as a very commercial entity. We welcome this development,” he added.
Similarly, the NMDPRA, through its General Manager, Corporate Communications, Kimchi Apollo, said Tinubu’s decision to end fuel subsidy was in line with the Petroleum Industry Act (PIA) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.
“We are working closely with NNPC Limited and other key stakeholders to guarantee a smooth transition, avoid any disruptions in supply as well as ensure that consumers are not short-changed in any form.
“The Authority assures that there is ample supply of PMS to meet demand as we have taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country.
“We therefore call on Nigerians to remain calm and resist the urge to stockpile as it poses a significant safety hazard.
“The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation.
“We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector,” it said in the statement.
Deji Elumoye and Nume Ekeghe
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