FG no Longer Paying Fuel Subsidy, Kyari insists

The Federal Government of Nigeria has officially ceased paying subsidies on Petroleum Motor Spirit (PMS), commonly known as petrol, according to the announcement made by the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), Malam Mele Kyari, during a press briefing with State House Correspondents on Monday in Abuja.

Kyari refuted rumors circulating on social media, asserting that the government was no longer extending subsidies to any individual or entity for the importation of 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,” he stated.

He emphasized that the government is encouraging marketers to resume imports, acknowledging the challenges they face. He cited the state of roads, which have forced transporters to divert their shipments, leading to localized fuel shortages.

Kyari explained, “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.”

Furthermore, Kyari highlighted that the ongoing deregulation in the sector has fostered competition among marketers, resulting in some fuel stations offering reduced prices. He clarified that these price reductions could create panic among consumers, leading to queues at such stations.

Regarding the supply of petrol, Kyari reassured the public that there are over 1.4 billion liters available for local consumption, both at sea and on land. He attributed some supply challenges to issues related to access to foreign exchange, which the government is actively addressing.

Kyari concluded by expressing confidence that market forces would continue to shape the industry, and the government’s efforts would stabilize the foreign exchange market. He assured marketers and consumers alike of a stable forex environment and a situation where petrol prices would align with other commodity prices.