The Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), with priority to public transport operators nationwide, as part of measures to ease the impact of high fuel and transportation costs on Nigerians.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday, October 8, 2026, during a press briefing on fuel prices and subsidy-related issues in Abuja.
Oyedele said the arrangement was not a return to petrol subsidy but a temporary measure through which the government would make petrol available at cost.
“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.”
The minister also disclosed that the Federal Government was negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol as part of a proposed price modulation mechanism.
According to him, the proposed ceiling is intended to shield consumers from sudden increases arising from fluctuations in global crude oil prices and the foreign exchange market.
Oyedele, however, clarified that the ₦1,350 ceiling does not mean petrol would sell for ₦1,350 per litre at filling stations.
“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiation a ceiling of N1,350 a litre on the ex gantry or landing cost of petrol to keep pump prices stable,” Oyedele said.
He explained that under the proposed arrangement, where the actual cost of petrol rises above the agreed ceiling, refiners and importers would initially absorb the difference and recover it when market conditions improve.
Oyedele said the mechanism was neither a subsidy nor a form of price control, but an effort to moderate fluctuations in petrol prices and provide greater certainty for households and businesses.
“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. Why? Because volatility itself adds to uncertainty and cost and when fuel goes up sharply, they rarely come down as fast.”
The minister said the Federal Government was introducing the additional measures because existing interventions had not sufficiently addressed the pressure on households and businesses caused by rising fuel and transportation costs.
He added that the proposed ₦1,350 ceiling would be reviewed monthly, with the relevant figures published to ensure transparency.
The latest measures are expected to provide temporary relief to public transport operators and other consumers while the government seeks to reduce the impact of fluctuations in global crude prices and exchange rates on domestic petrol prices.
