The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL), with priority for public transport operators, as part of measures to ease the impact of high fuel prices on households and businesses.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday at a press briefing on fuel prices and subsidy questions in Abuja.
Oyedele said the arrangement was not a fuel subsidy but a decision by the government to sell petrol at cost, meaning the price would reflect the cost of supplying the product rather than include an additional profit margin.
“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. So, it’s not a subsidy; the government is just saying we sell to you at cost,” he said.
The government also plans to establish a ceiling of ₦1,350 per litre on petrol’s ex-gantry or landing cost, under a proposed price mechanism intended to limit sharp changes in pump prices.
Pinnacle Daily reports that ex-gantry cost refers to the price at which petrol is supplied from a refinery or loading facility before distribution and retail costs are added, while landing cost refers to the cost of bringing imported petrol into the country.
According to the minister, the proposed ceiling was part of further steps to address the pressure on households and businesses from rising fuel and transportation costs, which existing measures had not fully resolved.
“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable,” Oyedele said.
The proposed ceiling does not mean petrol will sell for ₦1,350 per litre at filling stations; rather, it is intended to limit how quickly changes in global crude oil prices and the exchange rate feed into the cost of supplying petrol.
Under the proposed arrangement, refiners and importers would initially bear any shortfall if their costs rise above the ceiling, and would recover the difference later when market conditions allow.
He explained that the mechanism was neither a subsidy nor price control, but an arrangement to reduce sharp fluctuations in petrol prices over time.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X