The Federal Government has announced a 30-day petrol discount at NNPC stations, prioritising public transporters and targeting a N1,350 ex-gantry cost ceiling.
The Federal Government has announced a 30-day discount on petrol sold at Nigerian National Petroleum Company Limited (NNPC) filling stations, with public transport operators to receive priority under the arrangement.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, announced the measure on Thursday at a press conference in Abuja, saying the intervention was part of efforts to ease the economic pressure faced by households and businesses.
“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,” Oyedele said.
FG says discount is not a subsidy
Oyedele stressed that the arrangement should not be interpreted as a return to petrol subsidy, which the government formally removed in 2023. Instead, he said the government would sell petrol at cost through NNPC stations during the initial 30-day period.
The minister did not disclose the exact amount of the discount or announce a new uniform pump price for petrol. The intervention is therefore expected to operate through NNPC’s retail network, with public transporters receiving priority as the government seeks to reduce the impact of fuel costs on transportation and household expenses.
Government targets N1,350 petrol cost ceiling
Beyond the immediate 30-day discount, Oyedele said the government was negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.
He said the proposed arrangement was intended to provide greater stability for consumers by reducing the extent to which pump prices respond to every movement in international crude prices or the exchange rate.
“Pump prices do not have to follow every swing in global crude prices or the exchange rate. Government is negotiating a ceiling prices of N1,350 a litre on the ex-gantry or the landing cost of petrol to keep fuel prices stable.”
The proposed ₦1,350 figure refers to the ex-gantry or landing cost, rather than a fixed nationwide pump price. Oyedele said the price would be reviewed monthly, suggesting that the government could adjust the ceiling depending on prevailing market conditions.
FG plans forward crude sales to refiners
The government is also considering the forward sale of crude oil to domestic refiners at an agreed period and price, although Oyedele did not disclose when the arrangement would begin or the price at which the crude would be sold.
According to the minister, providing refiners with greater certainty over their crude supply costs could help stabilise the domestic petrol market and make it easier for them to plan their operations.
“That preserves your budget, provides certainty to the refiners and price stability to the consumers.”
The announcement comes as petrol prices and transportation costs remain significant concerns for households and businesses, with fluctuations in crude prices, foreign exchange and domestic supply costs continuing to influence the downstream petroleum market.
The government’s immediate intervention will run for 30 days in the first instance, while negotiations over the proposed ₦1,350 ex-gantry ceiling and forward crude sales to domestic refiners are expected to determine whether longer-term measures will follow.
