The Federal Government has announced a 30-day discount on petrol sold through the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators across the country to receive priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday in Abuja during a briefing on petrol pricing and the Federal Government’s position on fuel subsidy.
Oyedele said the initiative was designed to provide temporary relief to public transport operators and consumers amid concerns over rising petrol prices and their impact on transportation costs.
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He, however, stressed that the arrangement should not be interpreted as a return to petrol subsidy, explaining that the government’s intention was to make petrol available at cost during the 30-day period.
“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, government is just saying we sell to you at cost,” Oyedele said.
According to the minister, the arrangement will initially run for 30 days, with public transport operators given priority in accessing the discounted petrol.
The Federal Government has not yet disclosed the exact size of the discount or provided detailed guidelines on how eligible public transport operators will access the arrangement.
The announcement comes amid renewed concerns over the rising cost of petrol and its wider effect on transportation fares, food distribution, household expenses and the cost of doing business.
Oyedele also disclosed that the Federal Government was working on measures aimed at reducing volatility in petrol prices, including negotiations over a proposed ceiling of ₦1,350 per litre on the ex-gantry cost of petrol.
He explained that the proposed mechanism was intended to prevent pump prices from immediately reflecting every fluctuation in international crude oil prices and foreign exchange rates. Under the proposal, refiners and importers would absorb some fluctuations and recover the difference when market conditions become more favourable.
The minister said the government was also working on forward crude sales to domestic refiners, with rising domestic crude production expected to provide greater stability in the supply of crude to local refineries.
He said the government intends to sell crude to domestic refiners at $80 per barrel over the next six months under the forward-sale arrangement, a measure intended to provide greater certainty for refiners and consumers.
The Federal Government is also considering other measures to ease the pressure of high transportation and logistics costs, including increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and accelerated deployment of compressed natural gas across the states.
The 30-day petrol discount is therefore part of a broader package of measures being announced by the Federal Government as it seeks to address petrol-price volatility and the wider cost-of-living pressures facing Nigerians.
For public transport operators, the immediate question remains how the priority arrangement will be implemented and whether the discount will translate into lower operating costs and, ultimately, reduced transportation fares for passengers.
The government is expected to provide further details on the amount of the discount, participating NNPC stations and the mechanism for identifying eligible public transport operators.
Until those details are released, the Federal Government’s announcement remains a temporary 30-day intervention, with its impact on petrol prices and transportation costs to depend largely on how the arrangement is implemented nationwide.