NNPC cautions against Panic buying of Fuel

The Nigerian National Petroleum Company Limited (NNPC Ltd) has expressed support for President Bola Tinubu’s decision to remove subsidy on petrol, commonly known as fuel.

Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC Ltd, announced the company’s stance during a late-night briefing with journalists at the NNPC Ltd. Towers in Abuja on Monday.

President Tinubu declared the end of the subsidy regime during his inauguration as the President of the Federal Republic of Nigeria. In response, Mr. Kyari highlighted that the removal of the subsidy, which had burdened NNPC’s cash flow, would free up resources and facilitate optimal operations within the company.

“Subsidy has been a major challenge for NNPC’s continuous operations. We believe that this will free up resources to enable us to continue doing great work and function as a commercial entity. We welcome this development,” Mr. Kyari explained.

Addressing concerns about queues and scarcity of petroleum products already being experienced, the GCEO assured Nigerians of an ample supply of products, particularly petrol. He reassured the public that NNPC Ltd. currently has over 30 days’ worth of petrol storage and supply.

“There is no reason to panic. We understand that people may be worried about potential changes in petrol prices, but that is not sufficient reason for people to rush and buy more than they need,” Mr. Kyari added.

He appealed to Nigerians not to succumb to fear or engage in panic buying. As the supplier of last resort, as mandated by the Petroleum Industry Act (PIA), NNPC Ltd. is committed to ensuring the availability of petrol and other petroleum products. Mr. Kyari emphasized that the company is closely monitoring all distribution networks to ensure compliance.

The removal of the petrol subsidy is expected to have a significant impact on NNPC’s financial operations, allowing the company to allocate resources more efficiently and sustain its activities as a commercial entity.

As the situation unfolds, NNPC Ltd. remains focused on fulfilling its responsibility of supplying petroleum products to meet the nation’s needs while urging the public to remain calm and avoid unnecessary panic buying.