By: OrePulse

Nigeria's government will offer a discount on petrol sold at filling stations run by NNPC Limited for an initial 30-day period, prioritizing public transport operators, Finance Minister Taiwo Oyedele said on October 8.

Oyedele made the announcement at a briefing on fuel prices in Abuja. "We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance," he said.

The minister said the measure is not a subsidy, describing it instead as the government selling fuel "at cost." Asked about the distinction, he said: "So, it's not a subsidy, government is just saying we sell to you at cost."

The exact size of the discount and its nationwide start date were not specified at the briefing [uncertain].

The government is also negotiating a price ceiling for petrol of 1,350 naira per liter, measured at either the ex-depot or landed-cost level, with the figure subject to monthly review. Officials said the ceiling had not been finalized as of October 8.

Separately, the government plans to sell crude oil forward to domestic refiners to support local refining capacity, though the duration and pricing of those arrangements have not yet been set.

The government is also working with state governments to accelerate the rollout of compressed natural gas as an alternative transport fuel, and Oyedele urged transport operators to pass any savings from the discount on to passengers through lower fares.

Oyedele said the government may also consider a tax on operators found to be taking undue advantage of consumers along the fuel supply chain, with any proceeds directed toward transport support or vouchers for low-income urban workers. He said the government will also work with the National Assembly on additional tax relief for low-income earners under a planned 2027 Finance Bill.