The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators to receive priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing in Abuja on the government’s position on petrol prices and subsidy-related concerns.
Oyedele said the initiative should not be interpreted as a return to petrol subsidy, explaining that the government would make petrol available to eligible users at cost during the 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. So, it’s not a subsidy, government is just saying we sell to you at cost,” he said.
According to the minister, the temporary measure is part of efforts by the Federal Government to cushion the impact of petrol prices on Nigerians, particularly commuters who rely heavily on public transportation.
The initiative is expected to provide relief to transport operators and commuters amid the continued influence of petrol prices on transportation fares and the cost of goods and services.
Oyedele, however, maintained that the arrangement was fundamentally different from the fuel subsidy regime previously operated by the government.
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He said rather than having the government absorb the difference between the market price and the price paid by consumers, the current arrangement would allow the product to be sold at cost.
The announcement comes amid ongoing efforts by the Federal Government to manage the impact of petrol prices on households and businesses while sustaining reforms in the downstream petroleum sector.
Under the arrangement, public transport operators will be prioritised in accessing the discounted petrol, with the government seeking to ensure that the benefit ultimately translates into lower transportation costs for commuters.
Further details are expected on the implementation of the scheme, including the categories of transport operators that will qualify, the duration of eligibility and how the discount will be administered at NNPCL retail outlets.
The temporary intervention also highlights the government’s continuing challenge of balancing market-based petrol pricing with measures aimed at protecting households and businesses from rising transportation and living costs.