- By Kamil Opeyemi
“Majority of Nigerians don’t own cars and probably the effect of subsidy is that it eases transportation and they are able to get to their place of works or homes in a cheapest possible manner.”
Kyari said the essence of subsidy has been defeated with the fact that fuel is not sold at the subsidised rate at any filling station with the exception of a few in Lagos and Abuja. Kyari said this means despite the government paying heavily to subsidise, its benefits are enjoyed more by the elites who have many big cars while some marketers are also not accountable for the subsidies. He said for the last 17 years, NNPC has not been able to transport fuel from Mosimi to Warri due to the state of the pipelines and the activities of the vandals. Among other things, Kyari also said Nigerian fuel is so cheap saying this is one of the reasons for the smuggling to other African countries.
Kyari also said it is difficult to say exactly the consumption pattern of Nigerian fuel adding that the NNPC knows the volume of fuel that leaves the depots but does not have control over where the fuel ends.
“Majority of Nigerians don’t own cars and probably the effect of subsidy is that it eases transportation and they are able to get to their place of works or homes in a cheapest possible manner. If you look around the country possibly in all the states of federation, there is no time in the last couple of years that you buy fuel at designated price which means the price you buy petrol is being subsidized,” Kyari said on a live programme on Channels Television Thursday evening
He added that even without this announcement of a new price regime, there is subsidy element which usually goes into the pocket of some individuals.
While describing the removal of subsidy payment on fuel as painful, Kyari said the Federal Government is aware of the pain Nigerians were passing through and working to alleviate that.
Besides the pains, the NNPCL boss explained that the masses would benefit a lot from the decision taken by the administration of President Bola Tinubu.
According to him, the decision to remove subsidy on fuel is a result of the government’s inability to continue paying for petroleum products.
“It is very painful that this has to happen because the country can no longer afford this subsidy regime. We do not have the money to pay for it.
“Will it bring pains? Yes. These pains will be alleviated, and I am aware that Mr. President is working on this to see how the alleviation of these pains is going on. More than anything, it is going to enable the resources come back and be of use to the ordinary people,” he said.
Speaking further, Kyari assured Nigerians that the fuel queues across the country will be a thing of the past in the next two days.
“I do not see it staying beyond Saturday. The key problem with the PMS system is supply, so I have supplied it. There are over 810 million litres of PMS, or petrol in depots, and in towns and fuel stations across the country.
“So, you don’t have the problem of transferring those. That means you have supply on the ground in your house. People panic and run to fuel stations to buy. They now know that there is certainty of pricing so they have to go back,” he said
While clearing the notion that the subsidy regime should have rather ended in June 2023, NNPC-L boss stated that the law provided that the prices of premium motor spirits otherwise known as petrol be sold at normal market prices six months after the enactment of the Petroleum Industry Act, adding that the government had decided to spend on its citizens, which is why it was going to extend the appropriation until June 2023.
“By the provisions of the PIA, the subsidy regime vanished on the 17th of February, 2022. The law states that six months after the enactment of the PIA, petroleum products, particularly PMS must be priced at market rates,” he said
“By law, the subsidy regime is gone by February 17, 2022. But of course, the government can always decide to spend on its citizens, in the manner that it wants. There are subsidies on bread, fertiliser, and all kinds of other things all over the world. But the government in its wisdom, decided that there would be an appropriation for subsidy in 2022, and also provision for subsidy till the second half of 2023.
“That means that provision is made, but the law still applies in the market,” he added