The Nigerian National Petroleum Company Limited (NNPC Ltd) has extended its ₦66-per-litre petrol discount at its retail stations nationwide until October 31, 2026, describing the initiative as temporary customer relief rather than a return to the petrol subsidy regime.
The company announced the extension on Friday, October 9, following the Federal Government’s announcement of additional measures to cushion the impact of rising fuel prices on households, businesses and the wider economy.
In a statement signed by its Chief Corporate Communications Officer, Andy Odeh, NNPC said the discount was initially introduced on October 1 to commemorate Nigeria’s 66th Independence Anniversary. The offer was subsequently extended to cover the remainder of October.
According to the company, the initiative is intended to provide motorists with some relief amid rising international crude oil prices and volatility in the global energy market.
“ This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy,” the company said.
NNPC added that the offer applies to its retail outlets nationwide and does not establish a uniform petrol price across the country or change the market-based pricing framework governing petroleum products.
The extension follows a statement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who announced on October 8 that NNPC Retail would forgo its retail profit margin on petrol to help ease the burden of rising fuel costs.
The minister said the arrangement would run for an initial 30 days, with priority given to public transport operators.
According to the Federal Government, NNPC Retail would sell petrol at cost during the initiative, absorbing the reduction through its retail margin rather than relying on direct government payments to cover the price difference.
Oyedele maintained that the arrangement should not be interpreted as a restoration of the fuel subsidy removed in May 2023.
The government has argued that reducing a retailer’s profit margin is different from the former subsidy system, under which public funds were used to cover part of the cost of petroleum products.
NNPC clarified that the discount is limited to its retail stations and does not require other independent marketers to sell petrol at the same price.
Pump prices may therefore continue to differ between filling stations depending on supply costs, location, distribution expenses and individual pricing decisions.
The company said it would continue working with the Federal Government and other stakeholders to limit the effects of global market uncertainties on Nigerian consumers while maintaining reliable fuel supplies.
The extension comes as petrol prices remain a major concern for households, transport operators and businesses that depend on fuel for transportation, electricity generation and other daily operations.
The Federal Government has also announced additional measures intended to reduce the impact of fuel price volatility.
These include a proposed ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol, expanded compressed natural gas deployment, additional support for vulnerable households and subsidised credit for small businesses and consumers.
The government said the proposed pricing arrangement would require refiners and importers to absorb temporary cost increases above the ceiling and recover the shortfall when market conditions improve. It described the proposal as a price-smoothing mechanism rather than a return to blanket fuel subsidies.
The government is also considering an excess-profit tax on operators found to be taking undue advantage of consumers during the energy crisis.
However, the proposed measures and the extended NNPC discount are distinct interventions, and their implementation and effects on retail prices will depend on the details of the respective arrangements.
The extension has renewed public discussion about the distinction between temporary fuel-price relief and the broader question of petroleum subsidy policy.
The Federal Government maintains that the discount is commercially funded through NNPC Retail’s reduced profit margin and does not reverse the subsidy removal implemented in May 2023.
For consumers, the immediate benefit is the opportunity to purchase petrol at a reduced price at participating NNPC retail outlets during the extended promotional period.
However, the initiative does not eliminate wider market pressures affecting fuel prices, nor does it guarantee that petrol will become cheaper across all filling stations.
NNPC said it would continue communicating the scope and duration of its customer initiatives, urging Nigerians not to interpret the extension as a restoration of the former subsidy regime.