The Federal Government has announced a temporary 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), as part of measures aimed at easing the pressure of rising fuel and transportation costs.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the decision on Thursday during a press briefing on fuel prices and subsidy-related issues in Abuja.
According to Oyedele, the arrangement will initially run for 30 days and will give priority to public transporters nationwide.
He stressed that the measure should not be interpreted as a return to the petrol subsidy regime abolished by the Federal Government in 2023.
“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.
He added that the government was simply asking NNPC to sell the product at cost rather than reintroducing a subsidy.
The announcement comes as Nigerians continue to deal with the effects of high petrol prices, particularly on transportation and the cost of goods and services.
Government targets ₦1,350 landing-cost ceiling
Alongside the temporary discount, the government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol.
Oyedele clarified that the proposed ₦1,350 figure is not a new pump price. Instead, the mechanism is intended to reduce the impact of sudden changes in international crude oil prices and the naira exchange rate on the domestic petrol market.
Under the proposed arrangement, if the cost of petrol rises above the agreed ceiling, refiners and importers would initially absorb the difference and recover it later when market conditions improve.
The ceiling would also be reviewed monthly, with the government promising to publish the figures.
The minister said the objective was to reduce volatility in petrol prices, arguing that greater price stability would provide more certainty for households and businesses.
Not a return to subsidy
The Federal Government's insistence that the arrangement is not a subsidy is significant, given the political and economic debate surrounding the removal of fuel subsidy.
Oyedele has continued to defend the government's decision not to restore the former subsidy system, warning that returning to it could put pressure on government revenues, the naira and inflation. The government has estimated that petrol could eventually cost at least ₦2,000 per litre if subsidy were restored under the conditions it outlined.
For now, however, the 30-day NNPC discount represents a temporary intervention rather than a permanent change to the petrol pricing system.
The government has not yet disclosed the exact amount that consumers will receive as a discount per litre, meaning the practical impact of the announcement will depend on how the arrangement is implemented at NNPC filling stations.
The immediate priority, according to the government, is to provide some relief to public transport operators and, indirectly, to commuters who have been affected by rising fuel and transport costs.
The broader question is whether the temporary intervention can translate into meaningful relief for Nigerians without creating another long-term fiscal burden for the government.