The Nigerian National Petroleum Corporation Limited (NNPCL) has announced the end of the subsidy on Petroleum Motor Spirit (PMS), commonly known as petrol. Mele Kyari, the Group Managing Director of NNPC, clarified that the federal government is no longer paying any subsidy on petrol, debunking social media speculations.
Kyari explained that the government is recovering its full cost from the petroleum products it imports, and there is no subsidy whatsoever. He attributed the low queues observed in some states to challenges like bad roads, leading to diversions by transporters. The delays caused by these factors have been addressed, and the supply gaps filled.
Market forces are now playing a significant role in the petroleum sector, with marketers competing among themselves. Kyari noted that some queues were due to customers seeking lower prices, as certain fuel stations reduced their prices by N2 or N3. He assured the public that there is over 1.4 billion litres of petrol available for local consumption, both on the seas and on land.
The NNPC chief emphasized the impact of market competition, access to foreign exchange, and the government’s efforts to stabilize forex markets. He assured marketers of a stable forex situation, aligning petrol prices with other commodities, and emphasized the government’s commitment to resolving critical issues around forex access. The move signals a shift towards a more market-driven approach in the country’s petroleum sector.
