The Nigeria National Petroleum Company (NNPC) Limited says the decision to remove the subsidy on Premium Motor Spirit (PMS) by the President is a welcome development.
The statement was made by the Group Chief Executive Officer (GCEO) of the NNPC, Mr. Mele Kyari during a press briefing shortly after the pronouncement by the President.
He said the subsidy burden which has been placed on the NNPC, is affecting the company’s cashflow and threatening its sustainability plans due to the federal government inability to refund the subsidy claims.
He said the NNPC as a limited liability company and a going concern cannot continue to bear the burden of subsidy on behalf of the federation if it must deliver dividends to its shareholders and be profitable.
Mr. Kyari assured that the company has over 30 days of PMS storage and supply and appealed to Nigerians not to indulge in panic buying.
He said that the company is in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop framework of the implementation of the removal of the PMS subsidy as announced by the President.
He added that the company as the supplier of last resort as mandated by the Petroleum Industry Act (PIA) would continue to ensure availability of PMS and other petroleum products.