"We, therefore, call on Nigerians to remain calm and resist the urge to stockpile as it poses a significant safety hazard," an official said.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has cautioned Nigerians not to panic over subsidy removal, saying it has enough petroleum products to meet the country's demand.
The NMDPRA said this in a statement on Tuesday by its General Manager, Corporate Communications, Kimchi Apollo.
The statement was issued against the backdrop of the government's declaration that it will put an end to the fuel subsidy regime.
President Bola Tinubu on Monday in his inaugural address at Eagle Square, Abuja, declared that there would no longer be a petroleum subsidy regime as it was not sustainable.
He said the current 2023 budget only has provision for the fuel subsidy till June, adding that the funds meant for subsidies will be diverted to the creation of public infrastructure, education, health care and jobs.
In its statement on Tuesday, the NMDPRA said contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.
"The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) wishes to address concerns regarding the announcement of the removal of subsidy on Premium Motor Spirit (PMS) by President Bola Ahmed Tinubu.
"Contrary to speculations and concerns, the announcement is in line with the Petroleum Industry Act (2021) which provides for total deregulation of the petroleum downstream sector to drive investment and growth.
"We are working closely with NNPC Limited and other key stakeholders to guarantee a smooth transition, avoid any disruptions in supply as well as ensure that consumers are not short-changed in any form," the agency said.
The NMDPRA, however, assured that there is an ample supply of PMS to meet demand.
"We have taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country," the statement said.
"We, therefore, call on Nigerians to remain calm and resist the urge to stockpile as it poses a significant safety hazard."
The agency noted that the removal of subsidy on petrol is a step towards building a more sustainable and prosperous future for Nigeria.
"We will continue to monitor activities and implement necessary measures to enhance transparency and accountability in the petroleum downstream sector," it said.
Queues
Fuel queues returned to Nigerian cities Monday as many motorists scrambled to get petroleum products hours after Mr Tinubu announced that the government will put an end to fuel subsidy.
A PREMIUM TIMES correspondent who visited petrol stations across the nation's capital city Monday evening found that some filling stations were under lock and key while some were besieged by motorcyclists, tricycle owners, as well as private and commercial drivers.
The same trend was witnessed in Lagos, Ogun, and Ado-Ekiti, the capital of Ekiti State Lagos, Ogun.
Many filling stations in the Lugbe area of Abuja sold petrol at prices ranging between N194 and N198. Outside Abuja, residents said fuel stations sold petrol for N230.
Fuel subsidy
The Nigerian government has subsidised fuel and fixed retail prices of petroleum products for decades. But the payment has threatened the nation's fiscal position and impacted the government's ability to fund developmental projects across the nation.
In November 2021, the federal government announced its plan to remove the fuel subsidy and replace it with a monthly N5,000 transport grant for poor Nigerians.
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But the government later suspended the plan after the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) threatened to embark on mass protests.
The Minister of Finance, Zainab Ahmed, in January last year said the government had realised the timing of its planned removal of petrol subsidy is "problematic", and will worsen the suffering of Nigerians.
In the first quarter of 2023, Mrs Ahmed said that it will be more appropriate for the government to begin the implementation of its fuel subsidy policy in the second quarter of the year.
But in April, the National Economic Council (NEC) suspended the planned removal of subsidy on petroleum products by the end of President Muhammadu Buhari's administration.
The new government led by Mr Tinubu on Monday reinforced its decision to end the subsidy regime because it is not sustainable.
