The Nigerian National Petroleum Company Limited (NNPC) has supported President Bola Tinubu’s decision to remove subsidy on Premium Motor Spirit (PMS), also known as petrol.
Tinubu, in his inaugural speech at the Eagle Square on Monday, May 29, said that the era of subsidy payment on fuel has ended.
The president noted that the 2023 national budget made no provision for fuel subsidy, adding that fuel subsidy payment is no longer justifiable.
Tinubu stated that, “We commend the decision of the outgoing administration in phasing out the petrol subsidy policy which has increasingly favoured the rich more than the poor.
“Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions,” he added.
Meanwhile, Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, while speaking on the development on Monday, noted that the removal of subsidy, which had been a burden on NNPC cash flow, will free up funds to enable optimal operations in the company.
Kyari noted that, “There is no reason to panic, we understand that people will be scared of potential changes in price of petrol.
“But that is not enough for people to rush to buy more than they need.”
The NNPC boss, however, appealed to Nigerians not to be scared or indulge in panic buying, adding that the company has over 30 days of fuel storage and supply.
He added that the company, as the supplier of last resort as mandated by the Petroleum Industry Act (PIA), would continue to ensure availability of fuel across the country.
Kyari further noted that the NNPC is also monitoring all its distribution networks to ensure compliance.
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