FG Announces 30-Day Petrol Discount, Targets ₦1,350 Ceiling
By Our Correspondent
The Federal Government has announced a 30-day discount on petrol sold through Nigerian National Petroleum Company Limited (NNPCL) stations nationwide, with public transport operators given priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, disclosed this on Thursday during a press briefing in Abuja on fuel prices and subsidy-related issues.
Oyedele said the measure was introduced to provide immediate relief to Nigerians facing rising fuel and transportation costs, stressing that it should not be regarded as a return to petrol subsidy.
«“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.”»
The Federal Government also announced plans to negotiate a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol under a proposed price-modulation mechanism.
According to the minister, the proposed ceiling is intended to shield petrol prices from sudden fluctuations in international crude oil prices and foreign exchange rates. The ceiling would be reviewed monthly and published for transparency.
However, the ₦1,350 figure does not mean petrol will necessarily sell for ₦1,350 per litre at filling stations. It refers to the proposed ex-gantry or landing cost, with other distribution and operating costs potentially affecting the final pump price.
Under the proposed arrangement, refiners and importers would absorb any shortfall when the actual cost rises above the ceiling and recover the difference when market conditions improve.
Oyedele described the policy as neither a subsidy nor conventional price control, but a mechanism designed to smooth out sharp movements in petrol prices.
The government also announced other measures aimed at reducing the impact of high fuel prices, including forward crude sales to domestic refiners, reduction of illegal taxes and levies that increase logistics costs, increased support for vulnerable households and small businesses, and accelerated deployment of compressed natural gas (CNG) for transport operators.
The measures come amid concerns over the effect of rising petrol prices on transportation, food prices, businesses and household expenses.Suggested headline: FG Announces 30-Day Petrol Discount, Targets ₦1,350 Fuel Cost Ceiling