The Alliance for Economic Research and Ethics (AERE) has urged the Federal Government and the Nigerian National Petroleum Company Limited (NNPC) to publish weekly data on its ₦66-per-litre petrol discount.
It also urged the government to disclose its financial impact and enforce a clear expiry date to prevent the temporary relief measure from becoming a new fuel subsidy.
According to the alliance, the discount could cushion the impact of rising petrol prices without imposing a direct cost on the government’s budget.
It, however, warned that prolonged reductions in NNPC Retail’s profit margin could affect the company’s contributions to public revenue.
The recommendations were contained in an analysis issued on Sunday, October 11, by Dele Kelvin Oye, Chairman of AERE, following the government’s recent petrol price intervention.
The alliance called for NNPC Retail to publish weekly figures showing participating outlets, litres sold under the scheme, average discounts and the effects on sales volumes and profit margins.
“The public does not need a press release every week. It needs a scorecard,” it stated.
The intervention follows the Federal Government’s 30-day petrol discount offer at NNPC retail outlets, introduced on October 1 as an Independence anniversary promotion and subsequently incorporated into the government’s response to rising fuel prices.
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Pinnacle Daily had earlier reported that the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, had clarified that the discount was not a subsidy because NNPC Retail was reducing its own profit margin rather than drawing on the Federal Budget or Federation Account.
However, AERE said the distinction did not remove the need for scrutiny because NNPC is state-owned.
It warned that a permanent reduction in the company’s commercial returns could affect its contributions to public revenue.
The alliance also urged the government to honour the discount’s October 31 expiry date and explain the conditions for any extension, including the expected cost to NNPC and when the relief would end.
“Temporary measures become permanent when no one is required to defend their extension,” it stated.
AERE analysis shows that the ₦66 discount represented about 4.7 per cent of a petrol price of ₦1,400 per litre and was available only to customers able to access the promotion at participating NNPC Retail outlets.
It argued that the measure alone could not provide broad relief from rising transport and food costs.
The alliance recommended shifting more assistance towards targeted cash transfers, transport vouchers and support for public transport operators to help households most affected by higher fares and living costs.
It also called for faster deployment of compressed natural gas (CNG), enforcement against illegal levies that increase transport costs and improvements in domestic refining and fuel logistics.
On the government’s proposed negotiation of a ₦1,350-per-litre ceiling on petrol ex-gantry or landing costs, AERE said the terms, cost assumptions, beneficiaries and recovery mechanism should be published and independently assessed.
It warned that allowing refiners and importers to recover costs later could conceal future financial obligations if the arrangement lacked transparency.
“A ceiling without sunlight risks becoming a subsidy with a delayed invoice,” it stated.
The alliance said the government should treat the discount as a temporary customer-relief measure while prioritising targeted assistance and structural changes that reduce the economy’s exposure to global oil price shocks.
It added that the success of the intervention would depend on transparent reporting, a firm end date and clear accountability for any extension.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X