The Nigerian National Petroleum Company Limited (NNPC) has said its decision to extend a petrol discount at its retail outlets nationwide is intended to provide relief to Nigerians amid rising fuel prices and does not represent a return to the petrol subsidy regime.
The company said the discount, which was initially introduced to commemorate Nigeria’s 66th Independence Anniversary, would continue until October 31, 2026, to help reduce the financial pressure on households, businesses and commercial transport operators.
In a press release issued on Friday, October 9, and signed by its Chief Corporate Communications Officer, Andy Odeh, NNPC said the initiative was part of efforts to support the Federal Government’s measures to cushion the impact of rising global crude oil prices on the domestic petroleum market.
The company explained that the increase in international crude oil prices, partly driven by the conflict in the Middle East, had contributed to higher petrol prices, affecting transportation costs and the prices of goods and services across the country.
NNPC said it recognised the difficulties Nigerians were experiencing because of the rising cost of fuel and maintained that the discount was designed to provide immediate assistance without reversing the government’s decision to remove petrol subsidy.
“We recognise that higher petrol prices affect everyday life, from the cost of commuting to the expenses of running a business. We understand the strain on families and livelihoods, and this discount is intended to provide direct relief to customers during this difficult period,” the statement said.
The company added that the extension followed the statement issued on Thursday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who announced additional measures by the Federal Government to reduce the impact of rising fuel prices on Nigerians.
NNPC said its discount arrangement was introduced on October 1, 2026, before the government’s announcement, and would remain in place across its retail stations until the end of October.
It stressed that the initiative should not be interpreted as a restoration of the petrol subsidy removed by President Bola Tinubu on May 29, 2023.
“This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy,” the company stated.
NNPC further explained that the arrangement applied specifically to its retail outlets and would not establish a uniform pump price nationwide or change the market-based pricing system governing petroleum products.
The clarification comes a day after the Presidency announced that NNPC Retail would forgo its retail profit margin and sell petrol at cost for an initial period of 30 days as part of efforts to ease the burden of rising fuel prices.
According to the Presidency, the arrangement would give priority to commercial transport operators and vulnerable households struggling with increased transportation and living expenses.
Oyedele had explained that under the arrangement, NNPC would sell petrol at its landing cost without adding its usual retail profit margin.
For instance, if the company’s landing cost for a litre of petrol was N1,300, it would sell the product at that price rather than adding its retail margin.
The minister emphasised that the measure was not a return to subsidy but a temporary discount intended to provide relief while the government responds to developments in the international oil market.
“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,” Oyedele said.
The Presidency also disclosed that the Federal Government was negotiating a proposed ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to reduce sudden price increases.
Under the proposed arrangement, refiners and importers would initially bear any difference if the actual cost exceeded the ceiling and recover it later when crude oil prices or exchange rates became more favourable.
Oyedele maintained that the proposal was designed to reduce price volatility rather than introduce subsidies or impose fixed prices.
“This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppress them,” he said.
The Federal Government also announced plans to facilitate forward sales of crude oil to domestic refineries, increase funding for cash transfers to vulnerable households, expand access to subsidised credit and accelerate the rollout of compressed natural gas for transportation.
Other measures include efforts to reduce road taxes and levies that increase transportation costs, consider an excess profit tax on operators exploiting consumers, and provide additional tax relief for low-income earners under the proposed 2027 Finance Bill.
The government also plans to establish a National Strategic Fuel Reserve to help protect the country against future energy supply disruptions, artificial scarcity and sudden price increases.
According to the Presidency, the proposed reserve would allow refined petroleum products to be released into the market under clear rules whenever global disruptions or hoarding threaten supply and price stability.
The measures are intended to reduce the pressure on households and businesses without reversing the government’s broader fuel market reforms.
Reiterating its position, NNPC said it remained committed to working with the Federal Government and other stakeholders to ensure reliable petroleum product supply while providing practical support to customers.
The company urged Nigerians to disregard claims that its discount initiative amounted to a restoration of the petrol subsidy.
“We therefore urge the public to disregard any interpretation of this discount as a subsidy restoration,” the statement said.
NNPC added that it would continue to communicate clearly about its products, prices and customer support initiatives to enable Nigerians to make informed purchasing decisions.
“Our priority is to provide practical support while maintaining commercially responsible operations,” the company stated.