ABUJA — The Presidency has clarified that the Federal Government’s decision to sell petrol at cost through the Nigerian National Petroleum Company Limited (NNPC) is a temporary discount arrangement, not a return to the fuel subsidy regime abolished in 2023.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the 30-day measure on Thursday, October 8, 2026, during a press briefing in Abuja on rising petrol prices and the government’s response to the growing cost-of-living pressure.
Oyedele said the arrangement would initially last for 30 days, with public transport operators receiving priority in a bid to reduce the immediate impact of higher fuel prices on commuters and businesses.
“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; the government is just saying we sell to you at cost,” he said.
Government Explains Cost-Price Arrangement
The government’s position is that selling petrol at cost through NNPC differs from the former subsidy system, under which public funds were used to cover the difference between the regulated pump price and the actual cost of supplying fuel.
Under the newly announced arrangement, the government intends to provide temporary relief through a discount on petrol sold at NNPC stations rather than restore the previous blanket subsidy structure.
The announcement comes amid renewed pressure from rising international energy costs, which have pushed petrol prices higher in Nigeria and increased transport expenses for households and businesses.
According to reports, petrol prices have been hovering around ₦1,400 per litre in several locations, although prices vary by outlet and location.
FG Proposes ₦1,350 Price Ceiling
Oyedele also announced a proposed price-modulation mechanism aimed at limiting the impact of sudden increases in petrol costs.
Under the proposal, the government is negotiating a ceiling of approximately ₦1,350 per litre at the ex-gantry or landing-cost level.
The minister explained that when costs rise above the agreed ceiling, refiners and importers would initially absorb the difference and recover it later when market costs decline.
He said the approach was intended to reduce sharp price fluctuations without reinstating the former subsidy arrangement or imposing conventional price controls.
The proposal is part of a wider government response to the pressure created by rising fuel prices, which have affected transport fares, distribution costs and the prices of goods and services.
Public Transport Operators Get Priority
The government said public transport operators would receive priority under the 30-day discount programme because fuel costs directly affect the fares paid by commuters.
Lower fuel expenses for transport operators could help ease pressure on passengers, although the extent of any reduction in fares will depend on implementation and whether operators pass the savings on to customers.
The government has also outlined additional measures intended to protect households and businesses from further fuel-price shocks, including plans for a national strategic fuel reserve.
Under the proposed reserve arrangement, refined petroleum products would be released into the market under published rules when global distribution disruptions or hoarding threaten supply and price stability.
Subsidy Debate Returns
The announcement has revived debate over the consequences of the 2023 removal of petrol subsidies and the extent to which temporary government interventions can ease the resulting financial pressure on Nigerians.
While the government maintains that the new arrangement is a discount rather than a subsidy, the distinction will depend partly on how the programme is funded, administered and accounted for.
The measure also raises questions about its duration, the eligibility of beneficiaries and whether the proposed price-modulation mechanism will be implemented as announced.
For consumers, the immediate concern remains whether the intervention will translate into lower petrol prices, more affordable transport and reduced living costs.
The government has presented the 30-day arrangement as temporary relief rather than a reversal of its subsidy-removal policy. Its practical impact will become clearer as the programme is implemented across NNPC outlets nationwide.
