The Group Managing Director of Nigerian National Petroleum Corporation Limited (NNPCL), Malam Mele Kyari, has disclosed that the Federal Government is no longer paying subsidies on Petroleum Motor Spirit (PMS), popularly known as petrol.
Kyari disclosed this to the press on Monday in Abuja, noting that contrary to insinuations on social media, the federal government was no longer paying subsidies to any person or group for bringing 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 they begin to do so very quickly, and these are some of the government interventions. There is no subsidy,’’ he said.
Kyari further stated that the pockets of low queues witnessed across some states recently were due to bad roads that had made transporters divert the product to other routes.
“We have seen in very few states pockets of very low queues. This is not unconnected with the road situation, so 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 now than it used to be.
“They have to re-route their trucks around many locations for them to reach their destinations, which created delays and some supply gaps. But, that has been filled, and we do not see such problems again.
“Secondly, because of the full deregulation that we have in this sector, marketers are now competing amongst themselves,” he said.
The NNPCL group managing director also said that some of the queues were caused by customers’ preference to patronise filling stations that offered low 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 price reduction and probably create panic.
“This is because those who don’t know why they are doing it will think that something is happening or that there’s an ominous sign of scarcity,’’ he said.
According to him, over 1.4 billion litres of petrol are available for local consumption, both on the seas and land, adding that there is no cause for alarm.
Kyari explained that market forces were now playing out, and marketers were competing for the product and how to satisfy their customers.
‘’There are few issues we’re engaging them to resolve, alongside other agencies of government, particularly critical issues around access to foreign exchange.
“And as you all know, the government is doing much to ensure forex supply into the market.
“We know this FX market will stabilise the current I&E window, around 770.
“And we know that those inputs from the government will crystalise, and they will come to an equilibrium position in the FX market, and this is the dream of this country,’’ he said.
Kyari assured marketers of a stable forex and a situation where the product prices would align with the prices of other commodities.
(NAN)
READ ALSO FROM NIGERIAN TRIBUNE
