Home News Fuel subsidy removal has come to stay – Kyari

Fuel subsidy removal has come to stay – Kyari


Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has said that subsidy removal has come to stay.

He spoke the day after releasing the new petrol pricing template, which raised the price from N185 per litre to between N488 – N577.

In his inauguration address, President Bola Ahmed Tinubu announced that ‘fuel subsidy is gone’.

Following this, many marketers shut filling stations while others sold for between N600 and 900 per litre. Petrol queues returned to cities.

On Wednesday, a Federal Government team met with Labour leaders on the issues and palliatives. The parley will resume on Sunday in Abuja.

Kyari, who spoke during a visit to the National Secretariat of the All Progressives Congress (APC), said the Federal Government spends N400 billion on subsidy monthly, an amount that is too heavy for the economy to cope with.

He added that no kobo has been made available by the government for subsidy payments since February.

The NNPCL chief also said there is no data on the volume of petrol consumed in the country but that of offloading from the depots is always available.

He advised Nigerians to accept the reality that subsidy removal had come to stay.

The NNPCL boss warned that reversal of the decision could cause a cash crunch for the company and consequently affect borrowings by the federal and state governments.

Last year, the Federal Government said payment of subsidy would stop by June 2023. It budgeted N3.36 trillion for the payments.

Admitting that the removal of subsidy would cause hardship for the masses, Kyari expressed optimism that the attendant high cost of living would fizzle out in due course.