ABUJA, Nigeria — The Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), with priority for public transport operators, as part of fresh measures to cushion the impact of rising fuel prices on Nigerians.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing on fuel prices and subsidy-related issues in Abuja, reports Channels TV.
Oyedele said the initiative would run for an initial period of 30 days and was designed to ease the burden of high petrol prices on households, businesses and public transport operators.
He stressed that the arrangement was not a return to the petrol subsidy regime but a decision by the government to make fuel available at cost through the NNPC.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance, with priority for public transporters nationwide. So, it’s not a subsidy; government is just saying we sell to you at cost,” the minister said.
The announcement comes amid sustained pressure on Nigerians from elevated fuel prices and rising transportation costs, which have increased the cost of living and doing business.
FG Negotiates ₦1,350 Petrol Cost Ceiling
In another significant measure, Oyedele disclosed that the Federal Government was negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol under a proposed price-modulation mechanism.
The proposed ceiling is intended to moderate the impact of fluctuations in international crude oil prices and foreign exchange rates on the domestic cost of petrol.
However, the minister clarified that the ₦1,350 figure should not be interpreted as a new pump price or a guarantee that petrol would be sold at that rate at filling stations.
Rather, the mechanism is designed to limit sudden increases in the underlying cost of petrol and reduce the speed at which external market shocks translate into higher prices for consumers.
“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of ₦1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable,” Oyedele said.
Under the proposed arrangement, where the cost of petrol rises above the agreed ceiling, refiners and importers would initially bear the difference, with the opportunity to recover the shortfall later when market conditions improve.
The government says the arrangement is intended to smooth out price movements rather than impose a fixed selling price or reintroduce a general fuel subsidy.
Monthly Reviews, Transparency Promised
Oyedele explained that the proposed ceiling would be reviewed monthly to reflect prevailing market conditions, with the relevant figures published to promote transparency.
He said the policy was based on the need to protect consumers from sharp and unpredictable price movements, arguing that sudden increases in fuel prices could create greater uncertainty for households and businesses.
“The reasoning is simple: ₦1,400 a litre today and ₦1,400 a litre tomorrow is better than ₦1,500 a litre today and ₦1,300 a litre tomorrow,” he said.
According to the minister, rapid price increases often impose immediate costs on consumers, while subsequent reductions in petrol prices may not occur as quickly.
The proposed mechanism is therefore intended to provide greater price stability and make it easier for households, transport operators and businesses to plan their expenses.
The effectiveness of the measures will depend on how the 30-day discount is implemented, the extent to which public transport operators benefit, and whether the proposed cost ceiling can moderate price volatility without creating additional financial liabilities.
For consumers, a critical distinction remains: the 30-day discount applies to petrol dispensed by the NNPC, while the proposed ₦1,350 ceiling concerns the ex-gantry or landing cost—not the retail price at filling stations.
