The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL) as part of efforts to ease the impact of high fuel prices on Nigerians.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure at a briefing on fuel prices and subsidy questions in Abuja.
He said the discount would initially last for 30 days, with public transport operators given priority.
“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,” Oyedele said.
“So, it’s not a subsidy, government is just saying we sell to you at cost.”
The minister said the government was introducing additional measures because existing interventions had not sufficiently eased the pressure on households and businesses from rising fuel and transport costs.
FG proposes ₦1,350 petrol cost ceiling
Oyedele also said the government was negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol to reduce sudden price increases.He explained that the proposed ceiling would not mean petrol would sell for ₦1,350 per litre at filling stations.
Instead, the mechanism is intended to prevent fluctuations in global crude oil prices and exchange rates from immediately translating into higher petrol prices.
“Pump prices should not have to follow every swing in global crude or the exchange rate,” he said.
“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.”
Under the proposed arrangement, refiners and importers would initially bear any shortfall if costs exceed the ceiling. They would recover the difference later when market conditions allow.
Oyedele said the mechanism was neither a subsidy nor price control, but a way to moderate price fluctuations over time.
“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.
He added that sharp price increases often created uncertainty and additional costs, while reductions in fuel prices tended to come more slowly.
The minister said the proposed ceiling would be reviewed monthly, with the figures published to promote transparency.
