- Motorists celebrate Independence Anniversary gift with excitement
BY COBHAM NSA – A 30-day reprieve at the fuel pump has come for public transport operators nationwide as the Federal Government on Thursday announced temporary discount on petrol sold through the Nigerian National Petroleum Company Limited (NNPCl) stations.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, rolled out the relief measure at a media briefing on petrol prices and subsidy-related issues in Abuja, saying it was aimed at easing immediate economic pressure without reviving the defunct fuel subsidy.
Oyedele said the measure is designed as a margin discount at NNPC stations with the government utilizing a targeted “margin discount” framework, adding that under the 30-day arrangement, commercial drivers will be pushed to the front of the line to ensure the savings trickle down to everyday commuters.
According to the Minister, “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 to shield consumers from erratic pump prices, the government is also negotiating a strict ceiling of N1,350 per litre on the ex-gantry cost of petrol as part of efforts to shield pump prices from fluctuations in global crude oil prices and exchange rates, adding that under this high-stakes arrangement, refiners and importers will be forced to shoulder the financial burden whenever costs spike above the cap, while recouping their losses only when crude prices or currency markets swing back in their favor.
Additionally, the Minister stated that for the purpose of accountability and transparency, the ceiling will undergo a rigorous monthly review with all figures laid bare to the Nigerian public, adding: “We are introducing price modulation. Pump prices should not have to follow every swing in global crude or exchange rate.”
“This is neither a subsidy nor a price control; it is designed to smooth prices over time, rather than suppressing them,” Oyedele said and explained that the objective was to prevent sharp swings in pump prices, and, “The reason is simple: N1,400 a litre today and tomorrow is better than N1,500 today and N1,300 tomorrow, because volatility itself adds to uncertainty and fuels go up sharply; they rarely come down as fast.”
Oyedele said this aggressive price stabilization strategy being pursued by the government forms part of a broader economic cushion, which also deploys expanded cash transfers to vulnerable citizens, emergency and subsidised credit lines for small and struggling businesses, and consumers as well as an accelerated transition to cheaper Compressed Natural Gas (CNG) vehicles.
Speaking on the sheer scale of Federal Government’s fiscal intervention, the Minister disclosed that over N3.3 trillion in taxes and import duties on petrol have been extinguished as part of an aggressive, multi-billion-Naira package to cushion skyrocketing energy costs, adding that this monumental tax holiday, spanning the year up to September 30, 2026, represents a massive sacrifice of state revenue aimed squarely at stabilizing pump prices.
However, he said measures being introduced by the fiscal authorities have drawn a sharp, uncompromising line against possible return to past economic pitfalls, emphasizing that these targeted tax relief measures do not signal a resurrection of the bankrupting blanket fuel subsidy regime, as the government remains fully committed to market-driven pricing policy.
Issuing a stern and unequivocal clarification of government intentions, Oyedele said: “To be perfectly clear, none of these measures restores a blanket subsidy. To do so would amount to creating longer term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk.”
Meanwhile, the Minister’s sweeping announcement comes on the heels of a turbulent and highly fragmented national fuel market, where prices at NNPC filling stations continue to wildly fluctuate depending on different states.
Going by the NNPCL’s latest internal pricing framework, a stark geographic divide has emerged: while motorists in the coastal economic hubs of Lagos and Rivers are already reeling from a pump price of N1,355 per litre, those in the nation’s capital of Abuja are being hit even harder, facing a punishing N1,370 per litre price regime.
