Relief As FG Crashes Petrol Prices at NNPC Filling Stations, Gives Reason
- The Federal Government announced a 30-day petrol discount through NNPC, with public transport operators first in line to benefit
- Finance Minister Taiwo Oyedele said the government is negotiating a N1,350-per-litre ceiling on petrol landing costs
- Oyedele said the measures aim to reduce fuel price volatility and ease pressure on households and businesses
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The Federal Government has announced a 30-day discount on petrol sold through the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators to receive priority access under the arrangement.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced on Thursday, October 8, 2026, at a press briefing in Abuja focused on fuel prices and subsidy-related matters.
Source: Twitter
Oyedele was clear that the move should not be interpreted as a return to fuel subsidy.
He said:
“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, government is just saying we sell to you at cost."
FG targets N1,350 petrol landing cost
Beyond the discount, Oyedele revealed that the government is working to place a ceiling of N1,350 per litre on the ex-gantry, or landing, cost of petrol.
He clarified that this figure does not represent the expected pump price at filling stations, but rather a cap on the cost of the product before other costs are added, ChannelsTV reports.
The ceiling is designed to insulate consumers from sharp swings in global crude oil prices and naira exchange rate movements.
Oyedele said:
“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable."
The minister added that the ceiling would be reviewed monthly, with the figures published openly to ensure transparency.
Government moves to smooth out fuel price swings
Under the proposed arrangement, if petrol costs climb above the ceiling, refiners and importers would absorb the difference upfront and recoup it later when market conditions ease.
Oyedele described this as neither a subsidy nor price control, but a tool for managing price volatility over time.
He explained the logic in straightforward terms:
“The reasoning is simple, N1,400 a litre today and N1,400 a litre tomorrow is better than N1,500 a litre today and N1,300 a litre tomorrow.”
Source: Getty Images
Oyedele said the government chose to act because existing interventions had not done enough to shield households and businesses from the ripple effects of high fuel and transport costs, Punch reports.
He noted that sharp fuel price increases tend to push up costs across the economy, while price reductions, when they eventually come, often move much more slowly.
The measures are intended to offer near-term relief to petrol consumers while the government pursues broader stability in the downstream petroleum sector.
NNPC releases new petrol price for Abuja
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has reduced the pump price of petrol by N5 per litre at its retail outlets in Lagos from N1,360 to N1,355.
Motorists in Lagos and Rivers now pay N1,355 per litre, making them the cheapest locations on NNPC's updated price list. Abuja buyers are paying N1,370 per litre under the new arrangement.
Yobe has the highest petrol price at N1,435 per litre, followed by Niger State at N1,433.
Source: Legit.ng
