NNPC to Sell Petrol at Cost for 30 Days as FG Unveils Measures to Ease Fuel Price Pressure

The Nigerian National Petroleum Company Limited (NNPC) has agreed to forgo its petrol retail profit margin for 30 days to help ease the financial pressure on Nigerian households amid rising global crude oil and petrol prices.

The Federal Government announced the measure as part of a broader intervention designed to cushion the impact of international oil market volatility on consumers, particularly vulnerable households and commercial transport operators.

According to the Presidency, NNPC Retail will sell petrol at its landing cost without adding its usual retail profit margin during the intervention period. For instance, if the landing cost of petrol is ₦1,300 per litre, the company will sell it at that price rather than adding a retail margin.

The initiative, backed by President Bola Ahmed Tinubu, was announced by Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, during a briefing on the government’s response to rising fuel prices.

Oyedele expressed hope that other petroleum marketers would consider similar measures to reduce the burden on consumers. However, the extent of relief Nigerians will experience will depend on implementation, access to participating filling stations and prevailing market conditions.

FG Proposes ₦1,350 Petrol Landing Cost Ceiling

Beyond the temporary discount, the Federal Government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol.

Under the proposed arrangement, refiners and importers would initially absorb costs exceeding the agreed ceiling and recover the difference when international crude prices or exchange-rate conditions become more favourable.

The government says the approach is intended to moderate sharp price fluctuations rather than impose conventional price controls. The proposal’s eventual impact will depend on the terms agreed with refiners and importers and how the arrangement is implemented.

The government has also announced plans to increase forward sales of crude oil to domestic refineries as production rises and previously committed supplies become available. The measure is expected to help reduce the exposure of local refiners to international market volatility.

Presidency Rules Out Return to Fuel Subsidy

The Presidency has stressed that NNPC Retail’s decision to surrender its retail profit margin should not be interpreted as a return to the nationwide petrol subsidy regime abolished on May 29, 2023.

The distinction is that the announced intervention involves the retailer giving up its profit margin, rather than the government paying part of the cost of petrol from public revenue.

The administration has maintained that restoring a blanket subsidy could create additional fiscal pressures and undermine the economic reforms introduced to address longstanding problems associated with fuel pricing, public finances and petroleum supply.

Nevertheless, the temporary discount comes amid continued concerns about petrol affordability, transportation costs and the broader cost of living. Since petrol prices influence the cost of moving people and goods, sustained price volatility can affect household spending, small businesses and food distribution.

What the Measures Mean for Nigerians

For commuters and commercial transport operators, selling petrol without NNPC Retail’s usual profit margin could provide some relief during the 30-day intervention. However, the actual savings will depend on the prevailing landing cost and the prices charged at individual outlets.

The proposed landing-cost ceiling could provide a further mechanism for moderating sudden increases if the government reaches an agreement with refiners and importers.

The effectiveness of these measures will ultimately depend on transparent implementation, consistent fuel supply and the extent to which any savings reach consumers.

For households already facing high living costs, the immediate priority remains affordable transportation and the distribution of essential goods without further increases in operating expenses.

The Federal Government says its approach is intended to address the immediate pressure from global oil market volatility without reversing the broader petroleum sector reforms.

NNPC Retail will forgo its petrol profit margin for 30 days as the Federal Government proposes a ₦1,350 landing-cost ceiling to ease fuel price pressures in Nigeria.