The Nigerian National Petroleum Company Limited (NNPC Ltd) says the decision to remove the subsidy on petrol by President Bola Tinubu is a welcome development.

NNPC’s group chief executive officer Mele Kyari stated this at the NNPC Ltd. Towers in Abuja while briefing the journalists late Monday night after the pronouncement by the president.

Mr Tinubu, at his inauguration as president on Monday, said the subsidy regime would end with the commencement of his administration.

Mr Kyari said removing the subsidy, which has been a burden on NNPC’s cash flow, would free up funds to enable optimal operations in 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 to do great work and function as a commercial entity. We welcome this development,’’ he said.

Reacting to queues and scarcity already experienced, Mr Kyari assured Nigerians of a sufficient fuel supply, particularly petrol, adding that the company has over 30 days’ supply.

“There is no reason to panic. We understand that people will be scared of potential changes in the price of petrol. That is not enough for people to rush to buy more than they need,’’ he added.

He, however, appealed to Nigerians not to be scared or indulge in panic buying.

Mr Kyari added that NNPC, as the supplier of last resort mandated by the Petroleum Industry Act (PIA), would continue to ensure the availability of PMS and other petroleum products, stating that NNPC is monitoring all its distribution networks to ensure compliance.

He also revealed NNPC was in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop a framework for the implementation of the removal of the PMS subsidy as announced by the president.

Former President Muhammadu Buhari set June 2023 as the date to remove the fuel subsidy, explaining that if it continues to service it, the country will spend N6.4 trillion annually.

(NAN)