Nigeria’s Federal Government has outlined a temporary plan to soften the impact of higher petrol prices, with the Nigerian National Petroleum Company set to sell fuel at cost for 30 days by giving up its retail profit margin.
The measure is aimed at vulnerable households and commercial transport operators facing increased transport and living expenses. It was detailed on Thursday in a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
Temporary fuel-price relief
- Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, announced the arrangement on Thursday as part of a broader package intended to limit the domestic effects of rising international crude oil and petrol prices.
- NNPC Retail will suspend its normal margin on petrol sales for the next 30 days. If the company’s landed cost is N1,300 per litre, for example, petrol will be sold at N1,300 per litre rather than at a price including a retail markup.
- The initiative has President Bola Tinubu’s approval and is expected to focus particularly on public transport providers, while offering wider relief to households affected by higher fuel, transport and daily costs.
Oyedele said the intervention does not represent a restoration of the petrol subsidy that President Tinubu removed on May 29, 2023. He said he hoped other fuel marketers would follow NNPC’s example as the government addresses the impact of global price pressures.
The Presidency said the rise in global crude prices, and the resulting strain on local petrol prices, was expected to be temporary. It said the 30-day intervention was designed to provide short-term support without reversing the government’s fuel-market reforms.
NNPC Retail already offers the lowest petrol price in the market, the Presidency said. Under the new plan, it will pass on fuel to consumers, especially commercial transport operators, at its acquisition cost during the 30-day period.
The company’s decision to waive its retail earnings was among several measures announced by Oyedele to cushion Nigerians from volatility and price shocks in international oil markets, with backing from President Bola Ahmed Tinubu.
