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Petrol Subsidy Is Gone, But NNPC Can Intervene Occasionally – Lokpobiri

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'Fuel Is No More ₦660 Per Litre' - Filling Stations Reduce Price Of Petrol (See New Price)

The Minister of State for Petroleum Resources, Heineken Lokpobiri, has affirmed the termination of the petrol subsidy regime in Nigeria, clarifying remarks made by President Bola Tinubu on the subject.

During a recent interview on Channels Television, which coincided with President Tinubu’s first year in office, Lokpobiri reiterated that the government had decisively moved away from subsidizing petrol, a policy shift initiated by President Tinubu on May 29, 2023.

This declaration had a significant impact on petrol prices, driving them higher as the subsidy that had long kept fuel costs artificially low was removed.

The Minister explained that while the subsidy regime has officially ended, the Nigerian National Petroleum Company (NNPC) Limited retains the ability to intervene in the market under exceptional circumstances.

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This flexibility is seen as a way to stabilize prices and manage any potential market volatility.

Lokpobiri also addressed misunderstandings regarding President Tinubu’s statement on the subsidy’s end, noting that the confusion arose partly because the 2023 budget, formulated under former President Muhammadu Buhari’s administration, did not allocate funds for continuing the subsidy.

The minister said, “As the President has rightly said the day he was sworn in, the subsidy is gone. The president was misunderstood clearly.

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“The last government, Buhari’s government did not make any provision for subsidy in the 2023 budget. Whether anybody is saying it or not, the subsidy was gone. What the president in his characteristic style was speaking truth to power.”

According to the minister, what Tinubu meant was that in the 2023 budget, “there is no provision for subsidy, so subsidy is gone.

“And I can reconfirm to you that subsidy is gone, but there could be strategic intervention from time to time. Officially, subsidy is gone.”

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Asked what he meant by strategic intervention, Lokpobiri said in section 64 (m) of the Petroleum Industry Act (PIA), the Nigerian National Petroleum Company (NNPC) Limited, as a national oil company, also has a legal obligation to intervene from time to time.

According to the minister, this is because the NNPC is the last resort of the country that ensures there is availability and affordability of products.

Lokpobiri thanked Tinubu for having the courage to make the declaration on petrol subsidy.

is an Associate at Naija News. He is a news media enthusiast, he holds a degree in psychology and loves exploring and sharing about the enormous power that lies in the human mind. Email: [email protected], Instagram: adeniyidman