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Changes to petrol price is not enough reason for panic buying – NNPC Limited

Article Summary

  • NNPCL says Nigerians should stop engaging in panic buying of petrol
  • The Group Chief Executive Officer believes that the NNPCL is well equipped to handle its distribution networks to ensure a continuous supply of petroleum products.
  • The NNPC Limited welcomes the declaration of the removal of fuel subsidy by President Tinubu.

The Nigerian National Petroleum Company (NNPC) Limited has said that the potential changes to petrol price is not enough reason for Nigerians to engage in panic buying.

The Group Chief Executive Officer of the NNPCL, Mele Kyari said this yesterday, Monday, May 29, while addressing the press. According to him, the NNPCL is on hand to ensure a sufficient supply of petroleum products particularly, premium motor spirit (PMS) also called petrol.

According to Kyari, the company is monitoring all its distribution networks to ensure compliance. He said:

“We would like to assure Nigerians that we have sufficient supply of petroleum products, particularly PMS in our country and there is no reason to panic. We understand that people will be scared of potential changes to the price of petrol.

“But that is not enough for people to rush to fuel stations to buy more than what they need. We are watching all the distribution networks, and support facilities and we believe that normalcy will be restored very soon.”

Fuel subsidy removal is a welcome development

While addressing the press on Monday, Mele Kyari said that the declaration made by the new president about the removal of fuel subsidy is a welcome development. He said the NNPC Limited is in support of the policy.

This is because the company has been using some of its cash flow to make subsidy payments and this has been a huge burden on the company’s resources.

Recall that in February 2023, TheTimes reported that Mele Kyari said that the N400 billion fuel subsidy payments made by the NNPCL on a monthly basis are draining the company’s resources.

According to Kyari, the declaration by President Tinubu will enable NNPC Limited to actualize its potential as a truly commercial entity. He said:

  • “We welcome the decision of Mr. President to announce that the subsidy on PMS is over and this has really been a major challenge for the NNPCL’s continued operation. We have been funding the subsidy from the cash flow of the NNPCL.
  • “We believe that this decision will free resources for the NNPCL to continue to do the great works that this company will do for our country. It allows us to continue to function as a very commercial entity. We welcome this development.”

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