FG Unveils 30-Day Petrol Relief Plan as NNPC Agrees to Sell at Cost
The Federal Government has announced a 30-day petrol relief initiative under which the Nigerian National Petroleum Company (NNPC) Limited will sell petrol without adding its retail profit margin.
The initiative is aimed at cushioning Nigerians, particularly vulnerable households and commercial transport operators, against the impact of rising global crude oil prices.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the development, stating that the arrangement had received the backing of President Bola Ahmed Tinubu.
Under the plan, NNPC Retail will sell petrol at cost for the next 30 days, meaning the company will not add its normal retail profit margin during the period.
Oyedele urged other fuel marketers to consider similar steps to ease the burden on consumers, adding that the sharp increase in global crude oil and petrol prices was not expected to persist indefinitely.
He clarified that the initiative did not amount to a return to fuel subsidy, which the Tinubu administration abolished on May 29, 2023.
As part of efforts to prevent further increases in pump prices, the government is also negotiating a ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost.
The proposed arrangement would require refiners and importers to absorb costs above the ceiling and recover the shortfall later when crude oil prices or exchange rates become more favourable.
The government said the policy was intended to moderate price fluctuations rather than impose price controls.
Another measure involves forward sales of crude oil to domestic refineries, which the government expects to help shield local petrol prices from volatility in the international market.
The Federal Government also plans to expand the rollout of compressed natural gas, which it says is between 60 and 70 per cent cheaper than petrol, while encouraging transport operators to pass the savings on to passengers through lower fares.
Other interventions include increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and efforts to stop the collection of unauthorised road taxes and levies that increase transport and logistics costs.
The government is also considering an excess-profit tax for energy-sector operators who take undue advantage of consumers. Proceeds would be directed towards transport assistance and vouchers for low-income urban workers.
Plans are underway to establish a National Strategic Fuel Reserve to help prevent artificial scarcity, discourage market manipulation and improve the country’s preparedness for future energy crises.
The government further announced measures to reduce regulatory costs, improve traffic management and make logistics more efficient.
The Presidency said it recognised the economic difficulties Nigerians were facing but warned that restoring a blanket fuel subsidy could recreate the fiscal and economic challenges experienced in the past.
It maintained that the measures were designed to provide targeted relief without reversing the deregulation of the petroleum sector.
The government added that a broader fiscal package was being developed to bring inflation down to single digits sustainably in the near term.
