NNPC to Sell Petrol at Cost for 30 Days as FG Unveils Measures to Cushion Fuel Price Impact
NNPC to Sell Petrol at Cost for 30 Days as FG Unveils Measures to Cushion Fuel Price Impact
NNPC to Sell Petrol at Cost for 30 Days as FG Unveils Measures to Cushion Fuel Price Impact
The Nigerian National Petroleum Company (NNPC) has agreed to temporarily forgo its petrol retail profit margin and sell Premium Motor Spirit (PMS) at cost to cushion the impact of global crude oil price volatility on vulnerable Nigerians.
Under the arrangement, which is expected to begin within the next 30 days, NNPC Retail will sell petrol at its landing cost, particularly to support commercial transport operators and other vulnerable consumers.
The Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure as part of a package of interventions approved by President Bola Ahmed Tinubu to mitigate the effects of rising crude oil and petrol prices.
Oyedele explained that if NNPC’s landing cost, for instance, is ₦1,300 per litre, the company would sell at the same price without adding its retail profit margin.
He urged other fuel marketers to consider similar measures, noting that the current rise in crude oil and petrol prices was expected to be temporary.
The Minister, however, stressed that the NNPC arrangement should not be interpreted as a return of petrol subsidy, which was discontinued on May 29, 2023.
FG Plans ₦1,350 Petrol Landing Cost Ceiling
Oyedele also announced that the Federal Government was negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol to help reduce pump-price volatility.
Under the proposed arrangement, where costs rise above the ceiling, refiners and importers would carry the shortfall and recover it later when crude oil prices or the exchange rate improve.
Oyedele said the ceiling would be reviewed monthly and adjusted according to prevailing costs, with the figures published for transparency.
“This is neither a subsidy nor a price control; it is designed to smooth prices over time rather than suppressing them,” he said.
The Federal Government also plans to introduce forward crude oil sales to domestic refineries, which is expected to help shield domestic petrol prices from global market fluctuations as production increases and previously committed crude becomes available.
Other Measures to Cushion Nigerians
The government also announced plans to accelerate the rollout of Compressed Natural Gas (CNG) in collaboration with state governments, with the expectation that transport operators would pass the savings on to passengers through lower fares.
According to the government, CNG is expected to cost between 60 and 70 per cent less than petrol.
The Federal Government is also considering an excess-profit tax on operators found to be taking undue advantage of consumers along the energy value chain. Proceeds from such measures, it said, would be channelled into transport support and vouchers for vulnerable urban minimum-wage earners.
Other measures include increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and enhanced tax relief for low-income earners under the proposed 2027 Finance Bill.
The government also said it was working to reduce regulatory costs and road taxes and levies that contribute to higher transportation and logistics costs.
FG Plans Strategic Fuel Reserve
The Federal Government further announced plans to establish a National Strategic Fuel Reserve to strengthen energy security and reduce the impact of future supply disruptions.
Under the proposed system, refined petroleum products would be released into the market under clear and published rules whenever global disruptions or artificial scarcity threaten supply and price stability.
The government said the reserve would not be used to fix prices or restore subsidy but to strengthen supply security, discourage market manipulation and moderate sudden price shocks.
It also announced measures to improve traffic and logistics management, including better traffic flow in major urban centres to reduce fuel consumption and the use of NIPOST’s newly launched address codes to improve logistics efficiency.
The Presidency acknowledged the pressure caused by high fuel prices but maintained that restoring a blanket subsidy would undermine the gains of ongoing economic reforms.
“Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity. It is to ensure its gains reach more Nigerians, faster and in more tangible ways,” the Presidency said.
It added that the Federal Government was also working on a comprehensive package of fiscal measures aimed at sustainably reducing inflation to single digits in the near term.
Bayo Onanuga Special Adviser to the President Information and Strategy October 8, 2026.
NNPC to Sell Petrol at Cost for 30 Days as FG Unveils Measures to Cushion Fuel Price Impact
