The Federal Government has announced a 30-day discount on petrol sold at Nigerian National Petroleum Company Limited stations, with public transport operators set to receive priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday at a press briefing on petrol prices and subsidy-related issues in Abuja.
Oyedele said the government would offer the discount as part of measures to cushion the impact of recent increases in petrol prices and reduce price volatility.
He clarified that the arrangement does not amount to a fuel subsidy, saying the government would instead allow consumers to buy petrol from NNPC stations at cost.
“Government is taking further steps. Number one, margin discounts at NNPC stations. 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,” the minister said.
“So it’s not a subsidy, government is just saying we sell to you at cost.”
The minister also disclosed that the Federal Government was negotiating forward crude oil sales to domestic refineries to shield petrol prices from sharp movements in the international crude oil market.
According to him, the arrangement would enable local refiners to plan production around agreed crude prices and give consumers greater stability in petrol prices.
Oyedele further announced plans to introduce price modulation, including a proposed N1,350 per litre ceiling on the ex-Gantry or landing cost of petrol.
He said the measure would not amount to price control or a subsidy but would prevent pump prices from responding immediately to fluctuations in global crude oil prices and foreign exchange rates.
“Pump prices should not have to follow every swing in global crude or the exchange rates. The government is negotiating a ceiling of N1,350 a litre on the ex-Gantry or landing cost of petrol to keep pump prices stable,” he said.
Under the proposed arrangement, Oyedele said refiners and importers would absorb any shortfall whenever market costs exceed the N1,350 ceiling and recover the difference when market conditions improve.
He added that the government would review the ceiling monthly and publish the relevant data to promote transparency.
The measures come amid rising petrol prices across major Nigerian cities, where some filling stations have recently sold petrol for between N1,400 and N1,450 per litre.
The Federal Government said the interventions were designed to reduce the impact of fluctuations in crude oil prices and the naira exchange rate on petrol prices while providing greater price stability for consumers and public transport operators.
