The Federal Government has announced a 30-day petrol discount on products sold by the Nigerian National Petroleum Company Limited (NNPCL) as part of fresh measures to ease the burden 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 petrol prices and subsidy-related issues in Abuja.
Oyedele explained that the initiative was not a return to fuel subsidy but an arrangement through which the government would sell petrol at cost for an initial period of 30 days.
He added that public transport operators across the country would receive priority under the scheme.
“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.
As part of the broader intervention, the government is also negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol to reduce price volatility and provide greater stability in the domestic market.
According to Oyedele, the proposed ceiling would be subject to monthly reviews and is intended to shield consumers and businesses from sudden increases in petrol prices triggered by fluctuations in global crude oil prices and foreign exchange rates.
He clarified, however, that the ₦1,350 benchmark does not represent a fixed pump price at filling stations.
Rather, the mechanism is designed to moderate changes in the underlying cost of petrol before they translate into sharp increases in retail prices.
“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,” he said.
The minister explained that under the proposed arrangement, refiners and importers would initially absorb any shortfall if the actual cost of petrol exceeded the agreed ceiling.
Such losses, he said, could subsequently be recovered when market conditions improve.
Oyedele maintained that the initiative was neither a fuel subsidy nor a price-control policy but a mechanism for moderating price fluctuations over time.
He argued that maintaining relatively stable petrol prices would offer households and businesses greater certainty in planning their expenses, particularly amid rising transportation and operating costs.
“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 him, sudden increases in fuel prices create additional uncertainty and costs, while reductions often take longer to reflect in the market.
Oyedele added that the proposed price ceiling would be reviewed every month, with the relevant figures published to promote transparency.
The measures come as the Federal Government seeks to address the continued pressure of high fuel and transportation costs on households and businesses without formally reinstating the petrol subsidy regime.
