We are recovering our full cost from the products that we import.

The Federal Government of Nigeria has ceased its subsidy on Petroleum Motor Spirit (PMS), commonly referred to as petrol. This announcement was 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 in Abuja.

Kyari clarified that contrary to speculations circulating on social media, the government is no longer providing financial support to individuals or groups for the importation of petroleum products into the country. He emphasized, “No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market.”

He acknowledged the challenges faced by marketers in importing petroleum products and expressed hope for a swift resolution. Kyari attributed recent minor fuel shortages in some states to logistical difficulties caused by deteriorating road conditions, forcing transporters to reroute their deliveries. However, he assured that these supply gaps have been addressed.

He underscored that the current market operates under full deregulation, with marketers now in fierce competition. Kyari also pointed out that customers, seeking the best prices, may inadvertently create short-lived panic-buying scenarios at select filling stations.Fuel subsidy: Group calls for Kyari’s sack, holds mass protest on Aug 3

Addressing concerns about petrol availability, Kyari assured that over 1.4 billion litres of petrol are accessible for local consumption, both on land and at sea. He emphasized that there is no reason for alarm and highlighted the role of market forces and healthy competition in driving the sector.Kyari further outlined ongoing efforts to address critical issues, such as access to foreign exchange, in collaboration with other government agencies.

He expressed confidence that the foreign exchange market will find stability, aligning with the broader market.In conclusion, Kyari assured marketers of a consistent forex supply, foreseeing a scenario where petrol prices align with those of other commodities in the market. This move marks a significant transition in the nation’s petroleum sector, ushering in a new era of market-driven dynamics.