NNPC to Sell Petrol at Cost for 30 Days as FG Unveils Relief Measures
The Nigerian National Petroleum Company (NNPC) Limited has agreed to forgo its petrol retail profit margin and sell fuel at cost for 30 days as part of efforts by the Federal Government to cushion the impact of rising global oil prices on Nigerians.
The decision, backed by President Bola Ahmed Tinubu, is expected to provide relief to households and commercial transport operators struggling with high fuel prices.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure, explaining that NNPC Retail would sell petrol at its actual cost without adding its usual retail profit margin.
According to the government, the arrangement will allow Nigerians, particularly commercial transport operators, to benefit from the temporary reduction in fuel costs.
Oyedele expressed hope that other petroleum marketers would adopt similar measures, noting that the current increase in crude oil and petrol prices was not expected to last indefinitely.
He, however, stressed that the initiative should not be mistaken for the restoration of the petrol subsidy, which was removed on May 29, 2023.
The Federal Government also disclosed plans to introduce additional measures to stabilise petrol prices, including forward sales of crude oil to domestic refineries and negotiations to establish a ceiling of ₦1,350 per litre for petrol’s ex-gantry or landing cost.
Under the proposed arrangement, refiners and importers would bear costs exceeding the ceiling and recover the difference later when market conditions improve.
Oyedele said the mechanism was designed to reduce sudden price fluctuations rather than control prices or reintroduce subsidies.
Other measures include expanding compressed natural gas (CNG) deployment, increasing cash transfers to vulnerable households, providing subsidised credit to small businesses and consumers, and addressing road taxes and levies that contribute to transportation costs.
The government is also considering an excess-profit tax on operators found to be exploiting consumers across the energy value chain. Revenue generated from the proposed measure would be used to provide transport support and vouchers for vulnerable urban workers.
In addition, the Federal Government announced plans to establish a National Strategic Fuel Reserve to protect the country against future energy supply disruptions and artificial scarcity.
The reserve would allow the government to release refined petroleum products into the market under transparent rules when global disruptions or hoarding threaten supply stability.
The Presidency acknowledged the hardship caused by rising fuel prices but maintained that restoring a blanket petrol subsidy would create greater long-term economic problems.
It said the government’s priority was to ensure that the benefits of economic reforms reached more Nigerians through targeted support.
The government also disclosed that it was working on a comprehensive fiscal package aimed at sustainably reducing inflation to single digits in the near term.
