The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL) as part of fresh efforts to ease the pressure of high fuel prices on Nigerians.
The intervention was announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a briefing in Abuja on Thursday.
According to Oyedele, public transport operators across the country will receive priority under the temporary arrangement.
He stressed that the measure should not be interpreted as a return to fuel subsidy, explaining that the government would simply make the product available at cost.
“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 government is also proposing a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.
Oyedele said the proposed ceiling is part of a price-modulation plan being negotiated by the government and would be subject to monthly reviews.
However, the ₦1,350 figure does not mean motorists will automatically buy petrol at ₦1,350 per litre at filling stations.
Instead, the government says the arrangement is intended to reduce the impact of sudden changes in international crude oil prices and exchange rates on petrol costs.
Explaining the rationale behind the proposal, Oyedele said:
“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, if the actual cost of petrol rises above the agreed ceiling, refiners and importers would initially absorb the difference and recover it later when market conditions improve.
Oyedele maintained that the mechanism is neither a subsidy nor a form of price control.
Instead, he said it is designed to reduce sharp fluctuations in petrol prices and provide greater predictability for consumers and businesses.
He explained the thinking behind the policy using an example of stable prices versus sudden increases and decreases.
“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.”
According to the minister, price volatility creates additional uncertainty and costs for Nigerians, particularly because fuel prices can rise quickly but may take longer to fall.
The proposed ₦1,350 ceiling will be reviewed every month, with the government planning to publish the figures to promote transparency.
Oyedele said the latest measures were being introduced because previous interventions had not completely eased the pressure that rising fuel and transportation costs have placed on households and businesses.
Source: Federal Government / Taiwo Oyedele
