Decades-Old Subsidy Gone As NNPC Adjusts Petrol Pump Price

 

Another Twitter user with the handle @RumuWonodi noted, “The BAT administration is off on the wrong foot regarding subsidy removal. Poor communication or false proof of readiness. How can you implement such a huge policy without an economic team?

No ministers, no advisers, aides (COS, SGF). Common! Even the NASS is not yet formed.

In a surprising and sudden move, NNPC Limited has issued a press statement informing the public about an increase in the price of petrol at their retail outlets throughout Nigeria. This follows the announcement by President Bola Tinubu during his inauguration address that his administration will put an end to the decades-old fuel subsidy.

The statement which was signed by Garba Deen Muhammad, the Chief Corporate Communications Officer of NNPC Limited read,

“ADJUSTMENT IN PUMP PRICE OF PMS

NNPC Limited wishes to inform our esteemed customers that we have adjusted our pump prices of PMS across our retail outlets, in line with current market realities.

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As we strive to provide you with the quality service for which we are known, it is pertinent to note that prices will continue to fluctuate to reflect market dynamics.

We assure you that NNPC Limited is committed to ensuring a ceaseless supply of products.

The company sincerely regrets any inconvenience this development may have caused.

We greatly appreciate your continued patronage, support, and understanding during this time of change and growth.”

This move by NNPCL is in line with the declaration by President Bola Tinubu on the 29th of May 2023. However, it is not in line with the realities painted by his media team. According to members of his media team, subsidy removal was not with immediate effect and Nigerians should stop panic-buying.

Also, the Chief Spokesperson for Bola Tinubu’s campaign team, Festus Keyamo noted that subsidy removal was not Tinubu’s idea. In a set of tweets, he pointed out that based on the budget inherited by Tinubu’s administration, there was no allocation for subsidy starting from June 2023. Additionally, the Petroleum Industry Act also did not include any provision for subsidy.

During the inauguration ceremony on Monday, the new President, Bola Tinubu said, “On fuel subsidy, unfortunately, the budget before I assumed office is that no provision is there for fuel subsidy. So, fuel subsidy is gone.” And immediately after the ceremony, fuel queues began to form in various locations across the country, with some fuel stations even selling petrol for as high as N600 per litre.

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The press statement released by NNPCL does not mention the exact new pump price of petrol, but there are speculations that it might range between N488 and N557 per litre across the country. BusinessDay surveyed the price of petrol in various cities across the country on May 31st, and it was noted that petrol was selling for N488/litre in cities like Lagos and as high as N557/litre in cities like Maiduguri.

PMS Price seen at an NNPCL Outlet in Port Harcourt this morning

Many experts have criticized the new administration for their approach to sharing information about the policy. Olufemi Awoyemi, the founder of ProShare, in a tweet, noted:

“Policy Communication 101 – Avoiding Self-Imposed Chaos and Policy Banana Peel.

“Policy communication means involving the public since the first process of the development of the policy. Meanwhile, policy dissemination only focuses on informing the public without involving them.”

Another Twitter user with the handle @RumuWonodi noted, “The BAT administration is off on the wrong foot regarding subsidy removal. Poor communication or false proof of readiness. How can you implement such a huge policy without an economic team?

No ministers, no advisers, aides (COS, SGF). Common! Even the NASS is not yet formed.”

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Since the release by NNPCL, the government has remained silent. This is traceable to the government having no appointees, and as a result, there is currently no authorized spokesperson for the government.