The Federal Government has announced a 30-day discount on petrol sold at Nigerian National Petroleum Company Limited (NNPCL) filling stations, with public transport operators to receive priority under the initiative.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing in Abuja on the government’s measures to address rising petrol prices and transport costs.
Oyedele said the arrangement was not a return to fuel subsidy but an effort by the government to sell petrol at cost for the initial 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; the government is just saying we sell to you at cost,” he said.
The minister also announced a price-modulation arrangement under which the government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.
According to Oyedele, when the cost of petrol rises above the agreed ceiling, refineries and importers would initially bear the difference and recover it later.
He stressed that the arrangement should not be interpreted as either a fuel subsidy or price control.
“We are introducing price modulation. The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to keep the price stable. When costs rise above the ceiling, refineries and importers will carry the shortfall and recover it later. This is neither a subsidy nor price control,” he said.
The Federal Government is also investing in a national strategic fuel reserve as part of efforts to strengthen supply and reduce price volatility.
Oyedele said refined petroleum products would be released into the market under clearly published guidelines whenever global supply disruptions or hoarding threaten availability and price stability.
