By Oluwakemi Kindness
The Federal Government has announced a 30-day margin discount on petrol sold at NNPC Limited stations nationwide, with public transport operators to receive priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday in Abuja at a news briefing on fuel prices and the subsidy question.
Oyedele said the discount is part of measures to cushion the impact of high fuel prices on households, commuters and businesses.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days, with priority for public transporters nationwide,” he said.
The minister also disclosed that the government is negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol to reduce price volatility.
He said the proposed arrangement would require refiners and importers to absorb costs when prices rise above the ceiling and recover the difference when crude prices or exchange rates improve.
“This is neither a subsidy nor a price control; it is designed to smooth prices over time rather than suppress them,” Oyedele said.
The government is also working on forward sales of crude to domestic refineries to shield petrol prices from fluctuations in the global market as domestic crude supply improves.
Oyedele said the government would work with states to remove illegal road taxes and levies that increase transport and logistics costs.
It is also increasing funding for cash transfers to vulnerable households and subsidised credit for small businesses and consumers.
The government is further accelerating the rollout of compressed natural gas (CNG), with transport operators expected to pass the savings to passengers through lower fares.
Excess Profit Tax
Oyedele said the government was considering an excess profit tax on operators that take undue advantage of consumers along the energy value chain.
He said proceeds from the proposed tax would be used to cushion the impact of fuel prices through transport support or vouchers for vulnerable urban minimum-wage earners.
The government will also work with the National Assembly on enhanced tax relief for low-income earners under the 2027 Finance Bill.
Fuel Reserve
Oyedele announced plans for a National Strategic Fuel Reserve to protect consumers and businesses from future energy shocks.
He said refined products would be released under clear, published rules whenever global disruptions or hoarding threaten supply and price stability.
The government is also planning measures to improve traffic and logistics management to reduce fuel consumption and the cost of moving goods.
Oyedele said the measures were being introduced because existing interventions had not fully relieved the pressure households are facing.
He maintained that the new measures would provide targeted relief without restoring a blanket petrol subsidy.
