TD The President Bola Ahmed Tinubu-led Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL) as part of measures to cushion Nigerians from the impact of high fuel prices.
The initiative is expected to prioritise public transporters nationwide and is aimed at helping to stabilise petrol prices amid rising fuel and transportation costs.
However, the government insists that the arrangement is not a return to fuel subsidy.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the development on Thursday during a press briefing on fuel prices and subsidy-related issues in Abuja.
Government To Sell Petrol At Cost
According to Oyedele, the government will initially provide the discount for 30 days, with public transporters given priority.
He explained that the government would effectively sell the petrol at cost rather than subsidise the product.
“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,” Oyedele said.
The announcement comes amid continued concerns over the impact of petrol prices on household expenses, transportation and business operations.
₦1,350 Target For Petrol Landing Cost
Oyedele also announced that the Federal Government is negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.
The proposed ceiling would be subject to monthly reviews.
The minister clarified that the ₦1,350 figure does not mean petrol will sell for ₦1,350 per litre at filling stations.
Instead, the proposed mechanism is intended to shield consumers from sudden increases caused by fluctuations in international crude oil prices and the foreign exchange rate.
Government Seeks To Reduce Price Volatility
Oyedele said the government was introducing additional measures because existing interventions had not completely addressed the pressure facing households and businesses following increases in fuel and transportation costs.
“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable.”
Under the proposed arrangement, where the actual cost of petrol rises above the ceiling, refiners and importers would initially absorb the difference.
They would subsequently recover the shortfall when market conditions improve.
FG: Arrangement Is Not Subsidy
The minister maintained that the mechanism should not be regarded as a conventional fuel subsidy or price control.
According to him, the objective is to smooth out price movements and provide greater stability for consumers and businesses.
“The reasoning is simple, N1,400 a litre today and N1,400 a litre tomorrow is better than N1,500 a litre today and N1,300 a litre tomorrow.”
Oyedele argued that sharp fluctuations in petrol prices create additional uncertainty and costs for Nigerians, particularly because price reductions often do not occur as quickly as increases.
Figures To Be Published Monthly
The proposed ₦1,350 ceiling will be reviewed every month, with the government expected to publish the relevant figures as part of efforts to promote transparency.
The 30-day discount on petrol sold through NNPC and the proposed ex-gantry price ceiling form part of the Federal Government’s latest measures to manage the impact of fuel prices.
Although the government rejects the description of the initiative as a petrol subsidy, the temporary discount means eligible consumers, particularly public transporters, could obtain petrol under a government-supported cost arrangement during the initial 30-day period.
