The Presidency has clarified that the Federal Government’s decision to offer a 30-day discount on petrol sold through Nigerian National Petroleum Company Limited (NNPC) retail stations does not amount to a return of the fuel subsidy regime. The clarification followed an announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that NNPC would temporarily forgo its retail profit margin and sell petrol at cost, with priority given to public transport operators. The Presidency said the measure, backed by President Bola Tinubu, was introduced to cushion households and businesses from the impact of rising global crude oil and petrol prices.Under the arrangement, NNPC Retail will sell petrol at its actual landing cost during the 30-day period instead of adding its normal retail margin. The government is also negotiating a ₦1,350 per litre ceiling on the ex-gantry or landing cost of petrol, with refiners and importers expected to absorb temporary increases above the ceiling and recover the difference when market conditions improve. Oyedele said the mechanism would be reviewed monthly and published for transparency, arguing that stabilising prices would help households and businesses plan better and prevent sharp increases from quickly feeding into transport fares and logistics costs.The Presidency said the petrol intervention forms part of a wider package aimed at protecting Nigerians from the current fuel-price shock without reversing the subsidy removal implemented in May 2023. Other measures include forward sales of crude to domestic refineries, increased support for vulnerable households and small businesses, faster deployment of compressed natural gas vehicles, efforts to remove illegal road levies and plans for a strategic fuel reserve. The government also warned that reinstating a blanket subsidy could create longer-term fiscal and economic problems, insisting that the current measures are designed to provide temporary relief while preserving the broader petroleum-sector reforms.
