FG Offers 30-Day Petrol Discount

Author: Gist Correspondent

The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL), with priority given to public transport operators nationwide.

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

Oyedele said the arrangement was not a return to petrol subsidy, explaining that the government would simply sell the product to eligible users at cost.

He said the measure was part of fresh efforts to cushion the impact of rising fuel and transportation costs on households and businesses.

The minister also announced that the government was negotiating a N1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.

He explained that the proposed ceiling would not mean petrol would sell for N1,350 per litre at filling stations.

Rather, it is intended to shield consumers from sudden increases caused by fluctuations in global crude oil prices and the exchange rate.

Oyedele said under the proposed price modulation mechanism, refiners and importers would initially bear any cost above the ceiling and recover the difference when market conditions improve.

He stressed that the arrangement was neither a subsidy nor price control, but a mechanism designed to reduce volatility and promote stability in petrol prices.

According to him, the government would review the ceiling monthly and publish the figures to ensure transparency.

Oyedele said maintaining relatively stable prices would provide greater certainty for households and businesses, noting that sharp increases in fuel prices often have a more immediate impact than subsequent reductions.

The minister said the government was introducing the measures because existing interventions had not fully addressed the pressure created by rising fuel and transportation costs.