The removal of the gasoline subsidy by President Bola Tinubu, according to the Nigerian National Petroleum Company Limited (NNPC Ltd), is a positive step.
After the president’s announcement, NNPC’s group chief executive officer Mele Kyari briefed the media late Monday night at the NNPC Ltd. Towers in Abuja and said this.
At his Monday inauguration as president, Mr. Tinubu declared that his government will bring an end to the subsidy system.
According to Mr. Kyari, eliminating the subsidy, which has negatively impacted NNPC’s cash flow, will free up money to enable the firm to run at its best.
“Subsidy has been a significant obstacle for NNPC’s ongoing operations. This, in our opinion, will free up resources that will allow us to carry on with our excellent job and continue operating as a business. We appreciate this change,” he added.
In response to the lines and shortages already present, Mr. Kyari assured Nigerians of an adequate supply of fuel, especially gasoline, saying that the firm had more than 30 days’ worth of supplies.
“There’s no need to freak out. We recognize that many will be anxious about possible changes in the price of gasoline. That is not enough to cause individuals to hastily purchase more than they require, he continued.
However, he urged Nigerians not to succumb to fear or panic purchasing.
Mr. Kyari continued by saying that NNPC will continue to guarantee the availability of PMS and other petroleum products in its capacity as the supplier of last resort required under the Petroleum Industry Act (PIA), adding that NNPC is keeping an eye on all of its distribution networks to ensure compliance.
He also said that NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) were working on a framework for implementing the president’s announcement to remove the PMS subsidy.
Former President Muhammadu Buhari established June 2023 as the deadline for eliminating the gasoline subsidy, noting that the nation would have to pay N6.4 trillion yearly to maintain it.