The Nigerian National Petroleum Company Limited (NNPC Ltd) says the decision to remove subsidy on Premium Motor Spirit (PMS) known as fuel by President Bola Tinubu is a welcome development.
Malam Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Ltd. made this known at the NNPC Ltd. Towers in Abuja while briefing the newsmen late Monday night after the pronouncement by the President.
The News Agency of Nigeria (NAN) reports that Tinubu, at his inauguration as the President of the Federal Republic of Nigeria on Monday said the subsidy regime will end with the commencement of his administration.
Kyari, while addressing the newsmen 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 to 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 GCO assured Nigerians of a sufficient supply of products particularly the PMS, adding that the company has over 30 days of PMS storage and supply.
“There is no reason to panic, we understand that people will be scared of potential changes in the price of petrol, but that is not enough for people to rush to buy more than they need,’’ he added.
He, however, appealed to Nigerians not to be scared or indulge in panic buying.
He added that the company as the supplier of last resort as mandated by the Petroleum Industry Act (PIA) would continue to ensure the availability of PMS and other petroleum products.
According to him, the 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.