The Federal Government has announced 10 measures to cushion the impact of rising petrol prices on households, businesses and transport users without restoring a blanket fuel subsidy.
The measures were unveiled by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a press briefing on fuel prices and the subsidy question in Abuja on Thursday.
Here are the 10 measures announced by the Federal Government:
1. 30-day petrol discount at NNPC stations
The government will allow the Nigerian National Petroleum Company Limited to forgo its retail profit margin and sell petrol at cost for 30 days, with priority given to public transport operators nationwide.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days, with priority for public transporters nationwide,” Oyedele said.
2. Forward sales of crude to local refineries
The government plans to increase forward sales of crude oil to domestic refineries as production rises. The move is expected to free up previously committed crude supplies and shield local petrol prices from fluctuations in the international market.
3. N1,350 ceiling on petrol landing cost
The Federal Government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.
Under the proposed arrangement, refiners and importers would absorb costs above the ceiling and recover the difference when crude oil prices or exchange rates become more favourable.
Oyedele said the arrangement was designed to moderate price fluctuations, rather than control prices or restore subsidies. The ceiling would be reviewed monthly, with adjustments published for transparency.
4. Removal of illegal levies
The government plans to work with state governments to curb illegal road taxes and levies that increase the cost of transporting goods and services.
Oyedele said the initiative would be pursued under the 2025 tax reform laws.
5. More direct support for vulnerable Nigerians
The government will increase funding for cash transfers to vulnerable households and provide subsidised credit to small businesses and consumers to ease the effects of higher fuel prices.
6. Faster rollout of CNG vehicles
The Federal Government will accelerate the deployment of compressed natural gas vehicles in partnership with state governments.
Transport operators will be encouraged to pass on the savings from using CNG to passengers through lower fares.
7. Excess profit tax
The government will consider an excess-profit tax on operators found to be taking undue advantage of consumers across the energy value chain.
Oyedele said proceeds would be used exclusively to cushion the impact of fuel prices through transport support or vouchers for vulnerable urban minimum-wage earners.
The government also plans to work with the National Assembly to introduce enhanced tax relief for low-income earners under the 2027 Finance Bill.
8. Reduction of regulatory costs
The Federal Government will reduce unnecessary regulatory requirements and costs that increase business expenses and contribute to higher prices of goods and services.
9. National Strategic Fuel Reserve
The government plans to establish a National Strategic Fuel Reserve to strengthen supply security and reduce the effects of global energy disruptions.
Oyedele said refined products would be released into the market under clear, published rules whenever disruptions or hoarding threatened supply and price stability.
He added that the reserve would help prevent artificial scarcity, discourage market manipulation and strengthen long-term energy security without fixing prices or restoring subsidies.
10. Better traffic and logistics management
The government will improve traffic management, particularly in major urban centres, to reduce fuel consumption and transportation costs.
It also plans to use NIPOST’s newly introduced address codes to make logistics operations more efficient and affordable.
The measures come amid rising petrol prices linked to higher international crude oil and refined-product prices.
Oyedele maintained that the government would rely on targeted interventions rather than restore a blanket fuel subsidy.
“To be perfectly clear, none of these measures restores a blanket subsidy. To do so would amount to creating longer-term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk,” he said.