● No need for panic buying, subsidy removal, Says NMDPRA
Petroleum products marketers, under the auspices of Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Marketers Association of Nigeria (DAPPMAN), have urged Nigerians not to indulge in panic buying, assuring they have adequate petrol that will meet the needs of consumers.
Long queues resurfaced at petrol stations across the country on Monday after President Bola Ahmed Tinubu, shortly after his inauguration, declared an end to subsidy regime.
In a statement jointly issued by the two organisations on Tuesday, and made available to ARMADANEWS, the marketers endorsed the pronouncement by President Tinubu, on the phase-out of the petrol subsidy regime.
The marketers, while reaffirming there is no cause for alarm, noted that panic buying or stockpiling of petrol creates artificial scarcity and poses significant safety hazards.
“We wish to pplaud and endorse the pronouncement by President Bola Ahmed Tinubu, GCFR, on the phase-out of the petrol subsidy regime. We appreciate the clarity of policy from the Tinubu administration, a direction that signals a courageous and pragmatic shift in our nation’s economic trajectory.
“In light of the assurances given by the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), we wish to reiterate that there is no cause for alarm. We strongly urge Nigerians to avoid panic buying or stockpiling of petrol.
“This behavior not only creates artificial scarcity but also poses a significant safety hazard”, the marketers said.
The statement added: “The NNPCL has assured Nigerians of adequate fuel supply and the NMDPRA is working closely with stakeholders to ensure a seamless transition. They are ensuring distribution channels remain uninterrupted, thereby making fuel readily available at all filling stations across the country.
“The decision to phase out this fuel subsidy regime is not merely a fiscal reform; it is a significant stride toward social justice. We are heartened that the administration plans to redirect these substantial funds towards essential public goods such as infrastructure, education, and healthcare. These investments
symbolize our shared future, promising considerable, long-term benefits for all Nigerians.
“We understand the concerns regarding potential price increases. However, we expect marketers to maintain reasonable pricing, as NNPCL remains the sole supplier of the product currently. We anticipate minimal changes regarding distribution costs, considering the cost of the product constitutes 80% of the pump price.
“We pledge, in collaboration with the Nigerian Association of Road Transport Owners (NARTO) and other crucial stakeholders, to manage these distribution costs diligently to minimize their impact on the pump price. Considering this clarity of policy, we ask our suppliers to continue supplying products to all legitimate marketers. We also urge all stations to remain open and avoid hoarding products.
“We eagerly await the day when the Dangote Petroleum Refinery, as well as other licensed importers, join the current supplier in a bid to diversify the source of petroleum products and enhance market competition.
“MOMAN and DAPPMAN will maintain open dialogue with the Federal Government, advocating for stability in the oil sector during this transitional period. We are prepared to support any measures from the government that would help cushion the impact on the populace.
We once again laud President Tinubu for his bold vision and stand ready to collaborate with his
administration in its effort to promote greater economic equality and prosperity for all Nigerians.”
No Need for Panic Buying, Subsidy Removal, Says NMDPRA
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has explained that the announcement on subsidy removal by the president is in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.
The oil sector regulatory agency said it is working closely with NNPC Limited and other key stakeholders to guarantee a smooth transition, avoid any disruptions in supply as well as ensure that consumers are not short-changed in any form.
Read the full text below:
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) wishes to address concerns regarding the announcement of the removal of subsidy on Premium Motor Spirit (PMS) by President Bola Ahmed Tinubu.
Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.
We are working closely with NNPC Limited and other key stakeholders to guarantee a smooth transition, avoid any disruptions in supply as well as ensure that consumers are not short-changed in any form.
The Authority assures that there is ample supply of PMS to meet demand as we have taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country.
We therefore call on Nigerians to remain calm and resist the urge to stockpile as it poses significant safety hazard.
The NMDPRA reassures all Nigerians that the removal of subsidy on PMS is a step towards building a more sustainable and prosperous future for our nation. We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector.