The Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), Malam Mele Kyari, announced on Monday in Abuja that the Federal Government has ceased subsidizing Petroleum Motor Spirit (PMS), commonly referred to as petrol.
He clarified that despite social media speculations, the federal government no longer provides subsidies to individuals or groups for importing petroleum products into the country.
“No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market.
“We understand why marketers are unable to import. We hope that they begin to do so very quickly and these are some of the interventions government is making. There is no subsidy,’’ he said.
Furthermore, Kyari explained that the recent occurrence of short queues in certain states was attributed to poor road conditions, leading transporters to redirect the product to alternative routes.
“We have seen in very few states pockets of very low queues. This is not unconnected with the road situation and that’s why we’re seeing some blockades on our roads.
“Moving the products from the southern depots into the northern part of the country takes them much longer time now than it used to be.
“They have to re-route their trucks around many locations for them to be able to reach their destinations and that created delays and some supply gaps. But, that has been filled and we do not see any of such problems again.
“Secondly, because of the full deregulation that we have in this sector, marketers are now competing amongst themselves,” he said.
The Group Managing Director of NNPCL also mentioned that certain queues were a result of customers choosing to frequent filling stations that provided lower prices.
“You must have noticed that some fuel stations will reduce their prices by N2 or N3. So customers will naturally run to the places where you have that reduction in prices and probably create panic.
“This is because those who don’t know why they are doing it will think that there’s something happening or that there’s an ominous sign of scarcity,’’ he said.
He stated that there is an excess of 1.4 billion liters of petrol accessible for domestic use, both at sea and onshore, and assured that there is no reason for concern. Kyari clarified that market dynamics are currently at play, with marketers engaging in competition to meet their customers’ needs.
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