The Federal Government of Nigeria has introduced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPC Limited) to public transport operators across the country. This measure aims to reduce the impact of changes in crude oil prices and exchange rates on petrol prices, transport costs, businesses, and consumers. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday, October 8, 2026, during a press briefing in Abuja.
According to Oyedele, the arrangement is not a return to fuel subsidy, but rather an effort to allow NNPC Limited to sell petrol at cost for the next 30 days. This will enable public transport operators to purchase petrol at a reduced price, thereby reducing their operational costs. The government also plans to introduce forward sales of crude oil to domestic refineries to protect local petrol prices from sudden changes in global crude oil prices.
The government plans to sell crude oil to refiners at a fixed price for several months, giving them more certainty about their costs and helping to keep petrol prices more stable for consumers. This measure is expected to reduce sharp movements in petrol prices, which usually have a ripple effect on transport fares and other costs. Oyedele stressed that the measure is neither a subsidy nor price control, but rather a way to ensure that petrol prices do not increase every time there is a change in global crude oil prices or the exchange rate.
Under the proposed arrangement, if the cost of petrol rises above N1,350 per litre, refiners and importers would temporarily absorb the difference and recover it later when market conditions improve. The government plans to review the N1,350 price ceiling every month and publish relevant data and figures to promote transparency. This will enable stakeholders to track the implementation of the measure and ensure that it is achieving its intended objectives.
The measures come amid recent increases in petrol prices across the country. In Lagos, many filling stations were recently selling petrol between N1,400 and N1,430 per litre, while some MRS stations sold at about N1,395 per litre. In Abuja, petrol prices were reported to range between N1,400 and N1,450 per litre. The government said the latest measures are aimed at reducing the impact of changes in crude oil prices and exchange rates on petrol prices, transport costs, businesses, and consumers.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, explained that keeping prices relatively stable would be better for consumers because increases in transport fares and other costs usually happen quickly when fuel prices rise, but do not fall at the same speed when fuel becomes cheaper. The government hopes that this measure will help to cushion the effects of petrol price increases on consumers and businesses.
The 30-day discount on petrol sold by NNPC Limited to public transport operators is expected to provide relief to transporters and consumers who have been affected by recent petrol price increases. The government's efforts to introduce forward sales of crude oil to domestic refineries and establish a price ceiling of N1,350 per litre are also expected to help stabilize petrol prices and reduce the impact of changes in crude oil prices and exchange rates on the economy.
Key points
- The Federal Government has announced a 30-day discount on petrol sold by NNPC Limited to public transport operators to reduce the impact of changes in crude oil prices and exchange rates.
- The government plans to introduce forward sales of crude oil to domestic refineries to protect local petrol prices from sudden changes in global crude oil prices.
- The government has established a price ceiling of N1,350 per litre for the ex gantry or landing cost of petrol to reduce sharp movements in petrol prices.
