The Federal Government has announced a 30-day discount on petrol sold through the Nigerian National Petroleum Company Limited (NNPC) filling stations as part of measures to cushion the impact of rising fuel prices and ease pressure on households and businesses.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday at a press briefing in Abuja, saying public transport operators would receive priority under the arrangement.

Oyedele stressed that the initiative did not amount to a return to petrol subsidy, explaining that the government would instead allow NNPC to sell the product at cost for the initial 30-day period.

“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.

According to the minister, the government’s position was that the arrangement should not be regarded as a subsidy because the intention was to sell petrol at cost rather than permanently absorb the difference between the market price and a government-fixed pump price.

The announcement comes amid continuing volatility in petrol prices across the country.

NNPC’s latest reported pump prices put petrol at about ₦1,355 per litre in Lagos and Rivers states and ₦1,370 per litre in Abuja. NNPC had also announced a ₦66 per-litre discount for customers using its fuel application at its stations nationwide.

FG proposes ₦1,350 ceiling

Beyond the immediate 30-day discount, the government is also working on a longer-term mechanism to reduce sharp fluctuations in petrol prices.

Oyedele disclosed that the government was negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol.

He said the proposal was designed to prevent pump prices from responding immediately to every movement in international crude oil prices and the foreign exchange market.

“We are negotiating a ceiling price of ₦1,350 a litre on the ex-gantry or the landing cost of petrol to keep fuel prices stable,” he said.

Under the proposed arrangement, where the actual cost of petrol rises above the ceiling, refiners and importers would initially absorb the difference and recover it later when crude prices or exchange-rate conditions become more favourable.

Oyedele described the arrangement as a form of price modulation rather than subsidy or conventional price control.

“This is neither a subsidy nor a price control; it is designed to smooth prices over time, rather than suppressing them,” he said.

He explained that the government’s objective was to replace sudden and unpredictable price movements with greater stability for consumers and businesses.

“The reason is simple: ₦1,400 a litre today and tomorrow is better than ₦1,500 today and ₦1,300 tomorrow, because volatility itself adds to uncertainty and fuels go up sharply; they rarely come down as fast,” the minister said.

The proposed ceiling would be reviewed monthly, with adjustments made when necessary and the figures published to improve transparency.

Government targets transport, households

Oyedele said the government was also pursuing other measures aimed at reducing the wider cost of fuel and logistics.

He disclosed that the government was working on forward sales of crude oil to domestic refiners. Under the proposed arrangement, crude would be sold ahead of time to refiners at an agreed price and period, providing greater certainty for refiners while helping to moderate petrol prices for consumers.

“That preserves your budget, provides certainty to the refiners and price stability to the consumers,” he said.

The minister said pump prices should not necessarily follow every movement in global crude prices or exchange rates, arguing that a more predictable pricing mechanism would provide relief to households and businesses.

He added that rising domestic crude production would also help shield the Nigerian market from international price volatility.

The government is further working with state governments under the new tax laws to rein in taxes and levies that contribute to higher fuel and logistics costs.

Oyedele said efforts were also being made to increase funding for cash transfers to vulnerable households and subsidise credit for small businesses and consumers.

The Federal Government is also working with state governments to accelerate the rollout of compressed natural gas (CNG) as an alternative to petrol and diesel.

The measures come against the backdrop of renewed political debate over the future of petrol subsidies ahead of the 2027 elections.

Opposition presidential candidates, including African Democratic Congress (ADC) candidate Atiku Abubakar and Nigeria Democratic Congress (NDC) candidate Peter Obi, have pledged to restore petrol subsidies if elected.

The Tinubu administration, however, has continued to defend the removal of the long-standing petrol subsidy, while arguing that targeted interventions, rather than a blanket subsidy regime, offer a more sustainable way of cushioning the effect of fuel-price increases.

The latest measures therefore represent an attempt by the government to provide immediate relief through the 30-day NNPC discount while simultaneously developing a mechanism that could make petrol prices more predictable without formally returning to a subsidy regime.