The Federal Government has introduced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPC Limited), with public transport operators to receive priority under the arrangement.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, announced the measure on Thursday, October 8, 2026, during a briefing on petrol prices and subsidy-related issues in Abuja.
Oyedele said the arrangement does not amount to a fuel subsidy, explaining that the government would instead sell petrol through NNPC at cost for the 30-day period. “Government is taking further steps. Number one, margin discounts at NNPC stations. 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.”
He said the measure was designed to provide temporary relief to consumers while efforts continue to reduce volatility in domestic petrol prices.
The minister also announced plans for the government to sell crude oil forward to domestic refineries as part of a broader strategy to shield petrol prices from fluctuations in the international oil market.
According to Oyedele, rising crude production and the release of previously committed crude volumes will create room for forward sales to local refiners.
He said the arrangement would give refiners greater certainty over their input costs while providing more stability for consumers.
For instance, the government could agree to sell crude to refiners at a predetermined price over a six-month period, allowing refiners to plan their operations and reducing the impact of sudden movements in global crude prices.
Oyedele also disclosed plans to introduce a price-modulation mechanism that would establish N1,350 per litre as a ceiling for the ex-gantry or landing cost of petrol.
He stressed that the proposed ceiling should not be interpreted as either a subsidy or direct price control.
According to him, the objective is to prevent domestic petrol prices from responding immediately to every movement in international crude prices and foreign exchange rates. “Pump prices should not have to follow every swing in global crude or the exchange rates.”
Under the proposed arrangement, when the cost of petrol rises above the N1,350 ceiling, refiners and importers would initially absorb the difference and recover it later when market conditions improve.
Oyedele said the approach would help reduce price volatility, which he argued creates additional costs for households and businesses.
He explained that maintaining a more predictable price would be preferable to frequent sharp increases and reductions in pump prices.
The minister said the N1,350 ceiling would be reviewed monthly, with research carried out where necessary and relevant data published to promote transparency.
The government’s measures are aimed at cushioning consumers against the effects of fluctuations in crude oil prices and exchange rates while providing greater certainty for refiners and other players in the downstream petroleum sector.
