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Friday, July 19, 2024

NNPCL recovering full cost on imported products, no subsidy – Kyari

The Group Chief Executive of the Nigerian National Petroleum Company Limited (NNPCL), Melee Kyari, said on Monday the Federal Government was no longer paying subsidy on Petroleum Motor Spirit (PMS), popularly known as petrol.

Kyari disclosed this to State House Correspondents in Abuja.

He said the federal government was no longer paying subsidy to any person or group for bringing petroleum products to the country contrary to claims on social media.

The NNPCL chief stressed that the company was recovering its full cost from products imported to the country.

He said: “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 that they begin to do so very quickly and these are some of the interventions the government is making. There is no subsidy.”

Kyari pointed out that the pockets of low queues witnessed in some states recently were due to bad roads that had made transporters divert the product to other routes.

He also claimed that some of the queues were caused by the customers’ preference for filling stations that offered low prices.

He added: “We have seen in very few states pockets of very low queues. This is not unconnected with the road situation and that’s why we are seeing some blockades on our roads.

READ ALSO: Nigerian govt still paying subsidy on petrol, PENGASSAN claims

“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 such problems again.

“Secondly, because of the full deregulation that we have in this sector, marketers are now competing amongst themselves.

“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 reduction in prices and probably create panic.

“This is because those who don’t know why they are doing it will think that there’s something happening or that there’s an ominous sign of scarcity.”

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