FG Announces 30-Day Petrol Discount Through NNPC, Targets ₦1,350 Cost Ceiling
The Federal Government has announced a 30-day discount on petrol sold through the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators set to receive priority under the new arrangement.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday in Abuja, describing it as part of fresh efforts to ease pressure from high fuel and transportation costs.
Oyedele stressed that the arrangement is not a return to fuel subsidy.
According to the minister, the government will instead sell petrol through NNPCL at cost during the initial 30-day period.
“It’s not a subsidy, government is just saying we sell to you at cost,” Oyedele said.
Taiwo Oyedele
Minister of Finance
Public transporters to get priority
The government says public transporters nationwide will receive priority under the 30-day arrangement.
The move comes as households and businesses continue to deal with the wider impact of petrol prices and increased transportation costs.
The government says existing measures have not fully addressed the pressure, prompting the latest intervention.
However, the announcement does not specify in the supplied material exactly how much consumers will save per litre at the pump.
FG targets ₦1,350 petrol cost ceiling
Alongside the discount, the government is negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.
Oyedele explained that the proposed ceiling should not be interpreted as a fixed pump price of ₦1,350 per litre.
Instead, the government wants to use the mechanism to reduce the impact of sudden changes in international crude prices and exchange rates on petrol costs.
The proposed ceiling would be subject to monthly reviews, with the figures published for transparency.
Oyedele said the objective is to make petrol prices more predictable rather than allowing pump prices to respond immediately to every movement in global oil markets or the naira exchange rate.
How the proposed mechanism would work
Under the arrangement outlined by the minister, if petrol costs rise above the agreed ceiling, refiners and importers would initially absorb the difference.
They would then recover the shortfall when market conditions improve.
The government says the mechanism is intended to smooth out price movements over time rather than impose permanent price controls.
Oyedele argued that greater stability could help households and businesses plan more effectively, even when market conditions fluctuate.
The minister also stressed the importance of avoiding a situation where petrol prices rise sharply but take longer to fall when market conditions improve.
The 30-day NNPCL petrol discount is the immediate measure announced by the Federal Government, while negotiations over the proposed ₦1,350-per-litre ex-gantry ceiling continue.
The government says the ceiling will be reviewed monthly and the figures published, while public transporters are expected to receive priority during the initial discount period.
The measures mark another attempt by the Federal Government to cushion the effect of high petrol and transportation costs without formally returning to the subsidy system.
For Nigerian households, businesses and commuters, the key issue will be whether the discount and proposed price-stabilisation mechanism translate into more predictable and affordable transport and fuel costs at the pump.
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