The Federal Government has announced a 30-day discount on petrol sold at Nigerian National Petroleum Company Limited (NNPC) filling stations nationwide, with public transport operators set to receive priority under the temporary arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the initiative would initially run for 30 days, with the government aiming to make petrol available at cost rather than reintroduce a fuel subsidy.
The measure was announced on Thursday, October 8, as part of efforts to ease the impact of rising fuel prices on transport costs and household expenses.
The government said the arrangement would initially run for 30 days and involve selling petrol at cost, rather than restoring the blanket fuel subsidy removed in 2023.
Public transport operators are expected to receive priority, although details of the discount per litre, eligibility requirements and the precise implementation arrangements have not yet been fully disclosed.
The government is also negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol. Under the proposed arrangement, refiners and importers would carry costs above the ceiling and recover the shortfall later when market conditions permit.
The proposed ceiling is aimed at moderating fluctuations in the cost of supplying petrol and is not necessarily a fixed retail pump price for motorists.
Other measures being pursued include the development of a national strategic fuel reserve, through which refined petroleum products could be released under published rules when supply disruptions or hoarding threaten market stability.
The 30-day discount comes amid continued concerns about the effect of high petrol prices on public transportation, food distribution, business operations and the general cost of living.
The impact of the intervention will depend on how the discount is implemented at NNPC stations and whether transport operators pass any reduction in their fuel expenses on to passengers through lower fares.
Further details are expected to clarify the operation of the discount and the wider measures intended to reduce pressure on households and businesses.