NNPC Limited welcomes subsidy removal; says no need for panic buying

The Nigerian National Petroleum Company Limited (NNPCL) has welcomed the pronouncement of President Bola Tinubu on the removal of fuel subsidy.

The group chief executive officer of NNPC Limited says that the removal of subsidy which has been a burden on NNPC’s cash flow will free up funds to enable optimal operations in the company.

The President, in his inaugural address had declared an end to the era of subsidy payment, saying the 2023 budget made no provision for fuel subsidy, so further payment was no longer justifiable.

Responding in an emergency press conference at the NNPC Towers, Abuja, NNPCL told Nigerians that the move was in the best interest of the company.

According to the GCEO of the company, Mele Kyari, the company has been spending a substantial amount of its profits in the subsidy of the product.

Reacting to scarcity already being experienced , he assured Nigerians of sufficient supply of the product.

NNPC Limited is currently meeting with marketers to agree on indicative pricing but in the meantime, government agencies and marketers have called upon Nigerians not to panic.

He noted that the NNPC is also monitoring all its distribution networks to ensure compliance

The oil regulator said in a statement that it is working with the Nigerian National Petroleum Company Limited and other key stakeholders to guarantee a smooth transition, avoid supply disruptions, and ensure that consumers are not short-changed in any form.

“Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment and growth,” the statement said.

The Authority assures that there is an ample supply of petrol to meet demand as it has taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country.