08/10/2026
Not Subsidy, At-Cost Sale โ FG Gives 30-Day NNPCL Fuel Discount To Public Transporters
Federal Government will sell petrol at cost through Nigerian National Petroleum Company Limited for 30 days, prioritising public transport nationwide, in move it says is not subsidy return.
Government said intervention seeks to lower transport costs as pump price averages about โฆ1,400 per litre.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, announced Thursday in Abuja during briefing on fuel prices.
"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. So, it's not a subsidy, government is just saying we sell to you at cost," he said.
Oyedele attributed price rise to higher international crude oil prices. He said crude previously around $70 per barrel before recent geopolitical tensions has risen, pushing petrol from about โฆ830 to about โฆ1,400.
He said removal of subsidy in 2023 prevented worse outcome.
"We do not like โฆ1,400/litre. It's expensive. But if the subsidy had not been removed by Mr President, what we'd be dealing with today would be far worse than โฆ1,400," he said.
Policy comes after pressure from organised labour. NLC President Joe Ajaero in Independence Day message said country at "crossroads of a full-scale survival crisis," with petrol at โฆ1,430 or higher in major cities, higher in hinterlands, inflation eroding wages, and rising costs of food, transport, school fees, rent. Labour demanded immediate price cut, wage award, new minimum wage negotiations, and accountability for subsidy savings since May 2023.
President Bola Tinubu has repeatedly ruled out blanket subsidy return, insisting reforms are working.
Discount is lead of 10 targeted, temporary interventions by Finance Ministry, which acknowledged earlier measures did not fully ease pressure. Government said new package channels help to those who need it most without harming wider economy.
Other components: More cash transfers to vulnerable households:
โข Subsidised credit for small businesses hit by high costs
Advance crude sales to local refineries to shield prices from global swings as local production rises
โข Price modulation pe***ng ex-gantry/landing cost at โฆ1,350 per litre, reviewed monthly
โข National Strategic Fuel Reserve to be released under clear rules during disruptions or hoarding
Work with states to curb illegal road taxes and boost CNG adoption, with transporters expected to cut fares
โข Cutting red tape, improving urban traffic to reduce fuel waste, using NIPOST address codes to lower logistics costs
โข Possible excess-profit tax on operators exploiting consumers to fund transport support and low-income vouchers
Government said none equals blanket subsidy. It did not give discount margin, how public transporters like buses and taxis will be verified and prioritised, or list of participating NNPC stations.
Measure is distinct from NNPC Retail promotions such as โฆ66-per-litre Independence Day discount via Fuel App.
Current NNPC retail prices vary from mid-โฆ1,300s in Lagos, Rivers to over โฆ1,400 in northern states. Government hopes focusing relief on public transport will moderate fares and limit inflation spillover.
