• Wednesday, June 12, 2024
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Midstream, downstream oil regulator supports subsidy removal

FG awards license to establish first hybrid crude export terminal

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has thrown its weight behind President Tinubu’s decision to remove subsidies as it cautions marketers on hoarding.

In a statement, Farouk Ahmed, Authority Chief Executive, NMDPRA said President Tinubu is right to remove the fuel subsidy because the past administration had already made moves toward the removal.

He cautioned the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Oil Marketers Association of Nigeria (MOMAN), and the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), to avoid hoarding and keep their fuel stations open.

“The pronouncement by Mr President is in line with the provisions of the law, For NNPCL to survive the action needs to be taken as quickly as possible; We will engage with the NNPCL to ensure there is a continuous flow of petroleum products, especially the premium motor spirit (petrol), to prevent any shortfall in the country. We have noticed some queues in the Federal Capital Territory and other parts of the country,” he said.

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Ahmed added that the queues forming is a result of panic buying following the president’s announcement and advised everyone to maintain calm, adding that the law has taken its course and as regulators, the agency will ensure that the consumers are not taken advantage of.

Similarly, Mele Kyari, group chief executive officer, NNPCL noted that fuel subsidy has been a burden on the company’s cash flow, but its removal will enable optimal operations in the Company.

Reacting to scarcity already being experienced, he assured Nigerians of a sufficient supply of the product, adding that NNPCL is also monitoring all its distribution networks to ensure compliance.