FG Announces 30-Day Petrol Discount at NNPC Stations

The Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPC) as part of measures to ease pressure from rising fuel and transportation costs.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday during a press briefing on fuel prices and subsidy-related issues in Abuja.

Oyedele said the discount would initially run for 30 days, with public transport operators across the country receiving priority under the arrangement.

He stressed that the measure should not be interpreted as a return to the petrol subsidy regime.

According to the minister, the government would instead make petrol available through NNPC at cost during the 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.

The announcement comes amid continued pressure from rising petrol prices and transportation costs, which have affected households, workers and businesses across the country.

Public transporters to receive priority

The Federal Government said public transport operators would be prioritised under the 30-day arrangement.

The move is expected to provide some relief to transport operators whose businesses are directly affected by changes in petrol prices and, in turn, to commuters who depend on public transportation.

The government has not yet provided all the operational details of how the priority arrangement will work or the exact discount that individual motorists and transport operators will receive.

The announcement is separate from the NNPC Retail ₦66-per-litre Independence Day promotion, which ran from October 1 to October 7 through the NNPC Fuel App.

FG insists measure is not a subsidy

Oyedele’s clarification comes against the background of renewed debate over petrol pricing and calls for the government to intervene as fuel costs continue to affect the wider economy.

The minister maintained that the latest arrangement does not restore a blanket petrol subsidy.

Instead, the government intends to use NNPC’s retail network to provide petrol at cost for the initial 30-day period.

The Federal Government is also considering other measures aimed at reducing volatility in petrol prices and limiting the effect of global crude oil prices and exchange-rate movements on domestic fuel costs.

One of the measures announced by the minister is a proposed ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol. The government says the proposal is intended to smooth price movements rather than permanently fix petrol prices.

The proposed ceiling would be reviewed periodically, with the government saying the objective is to prevent sharp swings in petrol prices caused by movements in international crude prices and foreign exchange.

Broader measures planned

The 30-day NNPC discount forms part of a wider package of measures being considered by the Federal Government to reduce pressure from fuel and transportation costs.

The government is also working on arrangements for forward crude sales to domestic refineries, which would provide refiners with greater certainty over crude supply and potentially reduce exposure to fluctuations in international crude prices.

The government has further highlighted the expansion of Compressed Natural Gas as an alternative energy source for transportation.

Oyedele said the government was seeking a combination of immediate interventions and longer-term measures to reduce the impact of energy-price volatility on Nigerians.

The Federal Government’s latest petrol intervention is therefore being presented as a temporary cost-relief measure, rather than a reversal of the fuel subsidy reforms introduced in 2023.

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Petrol prices have increased across several filling stations in the Federal Capital Territory following a fresh price adjustment by Dangote Petroleum Refinery.

The refinery raised its gantry price by ₦85, moving it from ₦1,265 to ₦1,350 per litre.

The increase represents a 6.7 per cent rise and pushes Dangote’s wholesale price above the current petrol landing cost of ₦1,311 per litre.

The latest adjustment comes amid a rise in global crude oil prices. Brent crude, Nigeria’s benchmark, was trading at about $108.21 per barrel, up from $107.92.

The development has intensified pressure on downstream operators, with some filling stations in Abuja already increasing their pump prices.

Abuja Filling Stations Increase Pump Prices

Checks by the News Agency of Nigeria on Sunday showed that several outlets had begun selling petrol at higher prices.

MRS retail outlets increased their pump price from ₦1,350 to ₦1,395 per litre.

NIPCO outlets also raised their price from ₦1,350 to ₦1,430 per litre, while Mobil outlets increased theirs to ₦1,400 per litre.

A petrol attendant at an MRS station said motorists could face another increase when newly purchased stock arrives.

“We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.

Economists Warn of Higher Inflation

Economist and development expert Aliyu Ilias warned that the latest petrol price increase could worsen inflation and deepen economic hardship.

He said higher petrol prices would likely increase transportation and production costs, particularly for food and other essential commodities.

“This kind of change is not good for the economy at all, and people are going to face more hardship as a result,” Ilias said.

Expert Calls for Stronger Regulation

Former Secretary-General of the Organisation of African Trade Union Unity, Owei Lakemfa, called for stronger measures to protect consumers from global oil price fluctuations.

Lakemfa argued that Nigeria should strengthen economic planning and its regulatory framework to prevent sudden increases in domestic petrol prices.

He said Nigeria’s position as an oil-producing country should provide an advantage through domestic refining.

The former labour leader also warned about the structure of Nigeria’s downstream petroleum market, which he said contained elements of oligopoly and monopoly.

He urged regulatory agencies to prevent excessive influence over the pricing of petrol.

Marketers Explain Frequent Price Changes

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers had reviewed their pump prices following repeated adjustments by Dangote Refinery.

Ukadike said the frequent price changes were creating uncertainty for marketers and consumers because replacement costs could change rapidly.

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The service began operations on December 2, 2024, as announced in a video shared by the Presidential CNG Initiative on its X (formerly Twitter) page.

The buses are operating along popular routes, including Mararaba to Eagle Square and Berger bus stop, offering relief to commuters. According to government statements, the free service will run for 40 days, concluding on January 6, 2025.

Last week, the Ministry of Transportation handed over 15 CNG-powered buses to three major transport unions to address the high cost of transportation in Abuja. The unions include the National Union of Road Transport Workers, the Nigerian Association of Road Transport Owners, and the Road Transport Employers Association of Nigeria.

In a video obtained by our correspondent on Monday, commuters expressed gratitude for the government’s initiative. Fatima, a passenger on one of the buses, said, “I just boarded a CNG bus going to Mararaba, and we were asked not to pay. I hope it will continue for long. I like it very much; I know this is the beginning of good things for Nigerians.”

Another commuter, Blessing, added, “If they’re doing like this, we’ll be happy. After this, let them bring down the price. That’s why I said they should.”

The introduction of the free bus service is part of the government’s broader efforts to mitigate the impact of high transportation costs on Nigerians while promoting the use of environmentally friendly CNG-powered vehicles.

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