The Federal Government has introduced a temporary 30-day discount on petrol sold at Nigerian National Petroleum Company (NNPC) Limited stations, with public transport operators receiving priority nationwide.

During a press briefing in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, emphasized that the initiative is structured as a cost-reflective margin discount at NNPC stations rather than a reinstatement of the old petrol subsidy system. He explained that the government is essentially supplying the fuel at cost to ease immediate transportation pressures.

Key Policy Measures

• Price Ceiling: Officials are currently negotiating a cap of N1,350 per litre on the ex-gantry and landing costs of petrol to minimize sharp pump price fluctuations. Under this framework, refiners and importers will absorb cost shortfalls when prices rise above the ceiling and recoup the difference when market conditions, such as crude oil prices or exchange rates, improve.

• Monthly Transparency Reviews: The proposed price ceiling will undergo monthly evaluations, with the resulting figures published publicly to maintain accountability.

• Waiver on Import Duties: The government disclosed that it has already granted a complete waiver on taxes and duties for petrol, valued at over N3.3 trillion for the period leading up to September 30, 2026.

Additional Relief Initiatives

To complement the fuel discount, authorities are rolling out broader support programs aimed at vulnerable demographics and small businesses. These include enhanced cash transfers, subsidized credit options for consumers and small-scale enterprises, and an accelerated transition toward compressed natural gas (CNG) vehicles.

Avoiding Blanket Subsidies

Administrators firmly maintained that these targeted interventions do not constitute a return to blanket fuel subsidies. Officials cautioned that blanket subsidies would create long-term economic damage for temporary relief, stressing that the current strategy focuses strictly on delivering aid directly to those most in need without destabilizing the broader economy.

The announcement arrives against a backdrop of varying pump prices across NNPC outlets nationwide. Recent pricing data indicates that fuel sells at N1,355 per litre in Lagos and Rivers, while prices in Abuja stand at N1,370 per litre.