Oyedele Says Measures Aim to Cushion Fuel Price Pressure and Reduce Pump Price Volatility
The Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL) as part of measures to ease the impact of high fuel prices.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday in Abuja, saying the discount would initially prioritise public transport operators nationwide.
Oyedele said the arrangement was not a subsidy, explaining that the government would sell the petrol at cost.
The government is also negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol, subject to monthly reviews.
Oyedele clarified that the proposed ceiling does not mean petrol will sell for ₦1,350 per litre at filling stations. Rather, it is intended to cushion the impact of fluctuations in global crude oil prices and the exchange rate on pump prices.
He said where costs rise above the ceiling, refiners and importers would initially bear the shortfall and recover it when market conditions improve.
Oyedele described the arrangement as a price-smoothing mechanism rather than a subsidy or price control, saying the government wants to reduce sharp price movements and provide greater certainty for households and businesses.
He added that the ceiling would be reviewed monthly, with the figures published to promote transparency.