The Nigerian National Petroleum Corporation (NNPC) Limited has expressed its approval of President Ahmed Bola Tinubu-led Federal Government’s decision on fuel subsidy removal. Speaking at a press conference in Abuja, Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, hailed the fuel subsidy removal as a positive step.
“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 NNPC’s continued operations. We have been funding subsidy from the cash flow of the NNPC since the government is unable to defer the cost of subsidy that is due to the corporation,” Kyari said.
The financial strain of fuel imports has burdened NNPC, and the fuel subsidy removal will unlock resources, making NNPC more commercially viable and enabling the corporation to serve the country more effectively.
“And we believe that this (the fuel subsidy removal) will be able to free resources for the NNPC to continue to do the great works that this company will do for our country, and it will allow us to function as a very commercial entity, and we welcome this development,” Kyari added.
Kyari assured Nigerians of the availability of petroleum products, particularly Petroleum Motor Spirit (PMS), emphasizing that there is no reason for panic buying. He urged the public to refrain from engaging in panic buying because of the fuel subsidy removal, as there would be no significant changes in petroleum product prices. He also pledged that normalcy in the supply chain would be restored promptly.
According to him, NNPC Ltd. is also monitoring all its distribution networks to ensure compliance. “The NNPC Ltd. is in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop a framework for the implementation of the removal of the PMS subsidy as announced by the president.