THE Federal Government has announced a 30-day discount on petrol sold at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC), with public transport operators set to receive priority under the arrangement.
Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, announced the measure on Thursday in Abuja as part of a broader package aimed at reducing the impact of fuel costs on households and businesses.
Oyedele said the government would initially run the discount for 30 days, describing the arrangement as a cost-based intervention rather than a return to petrol subsidy.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance with priority for public transporters nationwide,” he said.
The minister said the government would sell the petrol at cost under the programme, with transport operators receiving first consideration because of the potential impact of fuel prices on public transportation and household expenses.
The intervention comes alongside a proposed framework to make petrol prices less sensitive to sudden movements in international crude prices and the naira exchange rate.
Oyedele said the government was negotiating a N1,350 per litre ceiling for the ex-gantry or landing cost of petrol, with the benchmark to be reviewed monthly.
READ ALSO: FG proposes N1,350 petrol cost ceiling to curb price shocks
He also disclosed plans for the government to sell crude oil forward to domestic refiners at a period and price yet to be determined.
According to the minister, forward crude sales would provide greater certainty for refiners, help protect government revenue and contribute to more predictable petrol prices for consumers.
Oyedele said petrol pump prices should not necessarily respond immediately to every change in global crude prices or foreign exchange (FX) rates.
The government is also accelerating the rollout of compressed natural gas in partnership with state governments as part of efforts to reduce dependence on petrol in the transport sector.
Oyedele said transport operators benefiting from lower energy costs would be encouraged to pass the savings to commuters through cheaper fares.
Beyond the immediate fuel intervention, the government is considering an excess-profit tax for operators across the energy value chain that are found to be exploiting consumers.
The minister said proceeds from such a tax would be used specifically to cushion vulnerable households against fuel-price pressures through transport support or vouchers for urban minimum-wage earners.
READ ALSO: Atiku and Obi: Why restoring petrol subsidy could put more pressure on Nigeria’s finances
The government also plans to engage the National Assembly on additional tax relief for low-income earners under the proposed 2027 Finance Bill.
The latest measures come as the government seeks to limit the effect of petrol price volatility while maintaining its position that the interventions do not amount to a reinstatement of the petrol subsidy regime.
Atiku rejects move
However, some Nigerians think this move is political, coming three monhs to the presidential election. The Presidential Candidate of the African Democratic Congress (ADC), Alhaji Atiku Abubakar, has rejected the proposed 30-day petrol discount.
Director of Strategic Communication of the ADC Presidential Campaign Council, Phrank Shaibu, said the former VP saw the measure as a temporary intervention that would not address the hardship caused by high fuel prices.
“Atiku totally rejects this calendar-scheduled, election-laced subsidy package. Nigerians are not fools to be offered a month of discounted fuel after years of punishing prices and then expected to forget the hardship when the discount expires. This is shameless and heartless,” he said.
“What happens on Day 31? Nigerians wake up to the same brutal prices, the same punishing transport fares and the same rising cost of food. The government cannot manufacture relief for one month and expect Nigerians to applaud while the hardship remains,” he said.
Mr Abubakar further argued that the government’s decision to introduce the temporary measure supported his proposal for production support tied to locally refined petrol.
“This volte-face proves that the production-support proposal I have advanced is workable, achievable and not complicated. The Tinubu government and its spin doctors have tried to make it sound impossible, yet they are now reaching for a temporary subsidy-style intervention because the pain has become impossible to ignore,” he said.
