..NNPC, NMDPRA back Tinubu, frown against panic buying
From Uche Usim, Abuja
More oil marketers have shut their gates to motorists, thus worsening the petrol scarcity imbroglio, which commenced on Monday, a few minutes after President Bola Ahmed Tinubu announced an end to the petrol subsidy regime in his inaugural speech.
Many filling stations in Abuja had queues snaking some meters.
Dubious oil marketers are taking advantage of the announcement to create artificial scarcity, which will force motorists to buy petrol at cutthroat prices.
Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have backed Tinubu’s move to immediately end fuel subsidy.
The Group Chief Executive Officer of NNPCL, Mr Mele Kyari in an emergency press conference at the NNPC Towers on Monday night, Abuja told Nigerians that the move was in the best interest of the company
The President, in his inaugural address on Monday, 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.
Kyari said subsidy payouts have continued to gulp a substantial amount of its profits, leaving it with leaner resources to operate.
Kyari however said there was no need for panic buying as fuel queues had been noticed in some areas of the FCT.
He noted that the company had enough product to supply the country for the next 30 days, adding that it was monitoring its supply and distribution networks around the country.
Under the former President Muhammadu Buhari, the Federal Government announced in January that it would stop the payment of fuel subsidy by the end of June.
Former Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed that in the 2023 fiscal period, the government had made provisions of N3.36 trillion for fuel subsidy payment to cover the first six months of this year.
This, she stated, was in line with the 18-month extension announced in early 2022.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said Tinubu’s decision to end fuel subsidy was in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.
“We are working closely with NNPC Limited and other key stakeholders to guarantee a smooth transition, avoid any disruptions in supply as well as ensure that consumers are not short-changed in any form.
“The Authority assures that there is ample supply of PMS to meet demand as we have taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country.
We therefore call on Nigerians to remain calm and resist the urge to stockpile as it poses a significant safety hazard.
“The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation. We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector”, it said in a statement.