The Nigerian National Petroleum Company Limited (NNPC Ltd) had welcomed the decision to remove subsidy on Premium Motor Spirit popularly called petrol by President Bola Tinubu.

The Group Chief Executive Officer (GCEO), NNPC Ltd, Mele Kyari, disclosed this at the NNPC Ltd. Towers in Abuja while briefing journalists.

The NNPC boss noted that the removal of the controversial subsidy would allow free flow of funds to enable optimal operations in the company.

Mr Kyari said “Subsidy has been a major challenge for NNPC’s continuous operations. We believe that this will free up resources to enable us continue to do great work and function as a commercial entity, we welcome this development,’’ he said.

Speaking on the sudden fuel scarcity facing different parts of the country, he said: “There is no reason to panic, we understand that people will be scared of potential changes in price of petrol, that is not enough for people to rush to buy more than they need.

“The NNPC Ltd. is in discussion with the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop framework for the implementation of the removal of the PMS subsidy as announced by the president.”

i-News Nigeria reported that scarcity of fuel has started gripping some major cities as queues began to surface Monday night causing widespread inconvenience and economic disruption after the announcement of removal of fuel subsidy by the newly inaugurated administration.

The scarcity comes in the wake of newly inaugurated President Bola Tinubu’s pledge to eliminate fuel subsidies, a move that is expected to increase the price of refined oil in a country already facing a severe economic crisis marked by double-digit inflation, surging debt, poverty, and unemployment.

In his inaugural address, President Tinubu vowed to “defend the nation from terror and all forms of criminality,” while declaring an end to fuel subsidies.

The removal of these subsidies is likely to result in a significant hike in fuel prices, further burdening Nigerian citizens already grappling with economic hardships.

The federal government had explained that the country will spend N6.4 trillion annually if it continues to service the subsidy on petrol.