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NNPC Welcomes Removal Of Fuel Subsidy Amidst N370 Per Litre, Scarcity Looms

Published

2 years ago

30/05/2023

NNPC Welcomes Removal Of Fuel Subsidy Amidst N370 Per Litre, Scarcity Looms

The Nigeria National Petroleum Company, NNPC limited, has applauded the federal government’s decision to eliminate the subsidy on Premium Motor Spirit PMS, also known as petrol.

Mallam Melle Kyari, Group Chief Executive Officer of NNPC Limited, addressed the press and stated, “The removal of the subsidy, which has been a burden on NNPC’s cash flow, will free up funds to enable optimal operations within the company.”

In response to the current scarcity, Kyari reassured Nigerians that the product would be available in sufficient quantities.

He insisted that “NNPC is also monitoring all of its distribution networks to ensure compliance”

Recall that in his inaugural address to the nation on Monday, Bola Tinubu, the new president of Nigeria, announced the complete elimination of fuel subsidies in Nigeria.

Meanwhile, in response to the immediate removal of the petrol subsidy, operators in Nigeria’s downstream petroleum sector have raised pump prices sharply as customers flocked to the petrol stations.

In response to the developments, commercial transporters have increased their trip costs across the nation.

The new president, Bola Tinubu, declared that “petroleum subsidy is gone” in his inaugural speech yesterday.

According to inspections in Lagos, some marketers responded by raising their prices by about 100%, from N185 per litre to N370.

In contrast, only a few other stations, particularly the major marketers, sold fuel between N195 and N220 per litre in Lagos and Abuja.

Our research also revealed that some fuel station owners simply shut down their filling stations, which created lengthy lines.

Even as depot owners stopped operating their businesses, claiming that additional clarification was required to direct activities regarding the implementation of the new order.

Long lines at gas stations returned in Abuja as drivers reacted to the elimination of the gasoline subsidy.