The Federal Government of Nigeria has introduced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL). This measure is designed to cushion the impact of rising fuel prices on citizens. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during a press briefing in Abuja. The discount is part of efforts to mitigate the effects of high fuel prices.
The discount will be offered at NNPC stations nationwide, with public transport operators receiving priority under the arrangement. According to Oyedele, the measure is not a return to petrol subsidy but rather a margin discount at NNPC stations. The government aims to sell petrol at cost price to this group of customers. This move is expected to provide relief to public transport operators and, by extension, to the general public.
In addition to the discount, the government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol. This is part of efforts to reduce sharp fluctuations in pump prices. Under the proposed arrangement, refiners and importers will absorb any shortfall when costs rise above the ceiling and recover it when crude prices or the exchange rate become more favourable.
The government is also pursuing other measures to ease the impact of higher fuel prices. These include increased cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and a faster rollout of compressed natural gas vehicles. The Minister stressed that the measures being introduced are not intended to restore a blanket fuel subsidy.
The Federal Government has already granted a full waiver of taxes and duties on petrol, worth more than N3.3tn for the year up to September 30, 2026. This move is part of efforts to reduce the cost of petrol and make it more affordable for citizens. The waiver is expected to have a positive impact on the economy.
Petrol prices at NNPC stations vary across the country, with the pump price ranging from N1,355 per litre in Lagos and Rivers to N1,370 per litre in Abuja. The discount offered by the government is expected to bring down the cost of petrol and provide relief to citizens. The government will review the ceiling of N1,350 per litre monthly and publish the figures for transparency.
The government’s efforts to cushion the impact of rising fuel prices are ongoing. The Minister of Finance emphasized that each measure is designed to reach the people who need help without putting the wider economy at risk. The government aims to provide support to vulnerable households and small businesses while ensuring the long-term sustainability of the economy.
Key points
- The Federal Government has introduced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL) with a priority for public transport operators.
