The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited as part of measures to cushion the impact of high fuel prices and promote stability in the downstream petroleum market.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing on fuel prices and subsidy-related issues in Abuja.
Oyedele said the arrangement was not a return to petrol subsidy, explaining that the government would instead sell the product at cost during the initial 30-day period, with public transport operators nationwide given priority.
“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,” he said.
The minister also announced that the Federal Government was negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol, with the proposed limit subject to monthly reviews.
He clarified that the ₦1,350 figure does not mean petrol will be sold at filling stations for that amount. Rather, the proposed ceiling is intended to reduce the impact of fluctuations in international crude oil prices and the foreign exchange market on domestic petrol prices.
According to Oyedele, where 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.
He said the mechanism was neither a subsidy nor conventional price control, but a strategy designed to smooth out pump prices and reduce volatility for households and businesses.
“Pump prices should not have to follow every swing in global crude or the exchange rate,” Oyedele said, adding that greater price stability would help reduce uncertainty and costs associated with sudden increases in fuel prices.
He explained that maintaining a relatively stable price would be preferable to frequent sharp fluctuations, noting that increases in petrol prices often occur faster than subsequent reductions.
The minister said the proposed ceiling would be reviewed monthly, with the figures published to promote transparency and allow Nigerians to monitor the implementation of the policy.
The measures come amid continued concerns over the impact of petrol prices and transportation costs on household incomes, businesses and the wider Nigerian economy.
