The Federal Government has announced a 30-day petrol discount aimed primarily at public transport operators as part of measures to cushion the impact of recent increases in fuel prices.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the measure this Thursday during a press briefing in Abuja.
Oyedele said the government would allow the Nigerian National Petroleum Company Limited (NNPCL) to sell petrol at cost for the next 30 days, stressing that the arrangement should not be interpreted as a return to fuel subsidy.
“Government is just saying we sell to you at cost,” the minister said.
He said the measure was designed to moderate sudden increases in petrol prices and reduce their impact on public transportation and consumers.
The minister also announced plans by the government to introduce forward sales of crude oil to domestic refineries as part of efforts to achieve greater stability in petrol prices.
Under the proposed arrangement, the government could enter into agreements to sell crude oil to local refiners at predetermined prices for several months. According to Oyedele, this would provide refiners with greater certainty over their operating costs and reduce the effect of fluctuations in international crude oil prices on domestic petrol prices.
Oyedele further disclosed that the government was working on an N1,350-per-litre ceiling for the ex-gantry or landing cost of petrol.
He emphasised that the proposed measure was neither a subsidy nor price control.
The minister said the objective was to prevent petrol prices from rising sharply whenever there were significant changes in global crude oil prices or the foreign exchange rate.
Under the proposed framework, where the cost of petrol rises above N1,350 per litre, refiners and importers would temporarily absorb the difference and recover it when market conditions improve.
Oyedele said the arrangement was intended to smooth out fluctuations in petrol prices and protect consumers from sudden increases.
He noted that increases in petrol prices often trigger immediate rises in transport fares and the cost of goods and services, while reductions in fuel prices do not necessarily result in equivalent decreases in those costs.
The government plans to review the N1,350 ceiling monthly, while relevant data and figures will be published to ensure transparency.
The announcement comes amid recent increases in petrol prices across the country.
In Lagos, several filling stations have been selling petrol for between N1,400 and N1,430 per litre, while some MRS outlets have been dispensing the product at about N1,395 per litre.
In Abuja, petrol prices have reportedly ranged between N1,400 and N1,450 per litre.
The Federal Government said the measures were intended to cushion the effects of fluctuations in crude oil prices and exchange rates on petrol prices, transportation costs, businesses and households.
