NNPC discount measure for petrol pump price has Tinubu’s backing – Presidency

By Johnbosco Agbakwuru The Presidency on Thursday explained that the measure taken by the Nigerian National Petroleum Company Limited (NNPCL) to forgo its petrol retail profit margin and sell to Nigerians at cost to cushion the impact of global crude oil price shocks and volatility on vulnerable households has the approval of President Bola Tinubu. The Presidency, however, explained that the measure should not be interpreted to mean that the government is out to reverse a necessary reform designed to set the country on the path towards sustained prosperity. It stated that it is to ensure its gains reach more Nigerians, faster and in more tangible ways.

A statement by the Special Adviser to President Tinubu on Information and Strategy, Mr. Bayo Onanuga, noted that the subsidy removal came at a price. “To be clear, none of these measures restores a blanket subsidy.

Doing so would create longer-term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk.” According to the statement, the Presidency acknowledged the challenges the people face over the high cost of fuel. “Removing the fuel subsidy came at a price.

But the alternative has been tried. Nigeria has already lived through that cycle: scarcity, smuggling, a collapsing currency and a fiscal crisis. We cannot afford to live through it again, least of all in response to a temporary disruption, and at the very moment the results of reform are gathering pace.” “Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity.

It is to ensure its gains reach more Nigerians, faster and in more tangible ways. That is our work, and we are committed to doing it. “The Federal Government is also working on a comprehensive package of fiscal measures to bring inflation down to single digits sustainably in the near term.” It stressed that the NNPC’s decision to forgo its petrol retail profit margin and sell to Nigerians at cost was aimed to cushion the impact of global crude oil price shocks and volatility on vulnerable households.

“NNPC Retail, which already sells petrol at the lowest price in the market, will offer this new deal within the next 30 days. This means if NNPC’s landing cost is N1300, it will sell fuel to Nigerians, especially commercial vehicles, at the same price,” it state… The Federal Government has announced 10 measures aimed at cushioning the impact of rising petrol prices on households, businesses and transport users across Nigeria.