The NNPC petrol discount announced by the Federal Government will run for an initial 30 days, with public transport operators receiving priority as authorities seek to reduce the impact of rising fuel costs on Nigerians.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the measure on Thursday during a press briefing in Abuja on petrol prices and subsidy-related issues.
Oyedele explained that the arrangement would allow the Nigerian National Petroleum Company Limited (NNPC) to sell petrol at cost during the period. He stressed that the measure should not be regarded as a return to fuel subsidy payments.
“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.
NNPC Petrol Discount Targets Transport Operators
The government said the temporary discount forms part of efforts to ease the financial pressure on households and businesses following increases in fuel and transportation costs.
Public transport operators will receive priority under the arrangement. However, the announcement did not provide full details on how eligible operators would access the discount or how much they would save per litre.
The government is also pursuing a separate plan to reduce sudden changes in petrol prices through a proposed limit on the ex-gantry or landing cost of the product.
FG Proposes ₦1,350 Petrol Cost Ceiling
Oyedele said the Federal Government was negotiating a ceiling of ₦1,350 per litre on petrol’s ex-gantry or landing cost.
The proposed arrangement would undergo monthly reviews and aims to prevent sharp movements in international crude oil prices and foreign exchange rates from immediately affecting domestic petrol costs.
However, the ₦1,350 figure is not a proposed nationwide pump price. It relates to the cost of petrol before it reaches retail filling stations, meaning motorists could still pay different prices depending on location and other expenses.
Oyedele said the government wanted to make fuel prices more predictable rather than allow them to rise and fall sharply over short periods.
“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,” he said.
How the Proposed Price Mechanism Will Work
Under the proposed system, refiners and importers would initially bear any cost above the agreed ceiling. They could then recover the shortfall when market conditions become more favourable.
According to Oyedele, the plan is intended to smooth out price movements over time. He maintained that it was neither a subsidy nor a form of price control.
The minister argued that keeping petrol prices relatively stable could help households and businesses plan their spending more effectively.
He also said the government would review the ceiling every month and publish the figures to promote transparency.
FG Seeks to Cushion Nigerians Against Rising Fuel Costs
The 30-day NNPC petrol discount and the proposed cost ceiling come as the government seeks additional ways to manage the impact of expensive fuel on Nigerians.
Higher petrol prices can increase transport fares and raise the cost of moving goods. Businesses may also face higher operating expenses, which can affect the prices consumers pay for everyday products.
While the temporary discount is expected to offer some relief to eligible buyers, its wider impact will depend on how the arrangement is implemented and whether the proposed cost ceiling helps limit price fluctuations.
The government has yet to provide all the operational details of the discount in the announcement reported by Channels Television.