The Federal Government has announced a fresh package of measures aimed at easing the pressure of rising petrol prices on households, businesses and transport operators, with the Nigerian National Petroleum Company (NNPC) Limited agreeing to sell petrol at cost for 30 days.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the measures on Thursday, saying NNPC Retail would temporarily forgo its retail profit margin in a bid to cushion consumers from the impact of rising global crude oil prices.
Under the arrangement, petrol will be sold at the actual landing cost without an additional retail margin. For example, where the landing cost is ₦1,300 per litre, NNPC Retail would sell at ₦1,300.
Oyedele said the initiative, approved by President Bola Tinubu, should not be mistaken for a return to petrol subsidy, which was removed in May 2023. He also appealed to other fuel marketers to adopt similar measures.
The minister said the government was negotiating an ex-gantry or landing-cost ceiling of ₦1,350 per litre to reduce sudden fluctuations in pump prices. The proposed ceiling would be reviewed monthly, while refiners and importers would recover any excess costs later when market conditions improve.
To further reduce exposure to international price volatility, the government plans to introduce forward crude-oil sales to domestic refineries, which Oyedele said would provide greater certainty for local fuel supply and pricing.
The relief package also includes increased cash transfers for vulnerable households, subsidised credit for small businesses and consumers, and an accelerated rollout of compressed natural gas (CNG). The government said CNG is significantly cheaper than petrol and expects transport operators to reflect the savings in lower fares.
The Federal Government is also considering an excess-profit tax on companies found to be exploiting consumers during the current price pressures. Revenue from the proposed measure could be channelled into transport support or vouchers for vulnerable minimum-wage earners.
Other interventions include efforts to reduce road levies and regulatory costs, improve traffic management and enhance logistics efficiency through the use of NIPOST address codes.
The government further announced plans for a National Strategic Fuel Reserve, which would allow refined petroleum products to be released into the market during major supply disruptions or periods of excessive hoarding.
While acknowledging the hardship caused by rising fuel prices, the Presidency maintained that reinstating a blanket subsidy would undermine the country’s fiscal position and could trigger renewed challenges, including fuel scarcity, smuggling and pressure on the naira.
It said the government’s priority was to protect the gains of ongoing economic reforms while ensuring that relief measures reach vulnerable Nigerians and efforts to bring inflation down are sustained.
