ABUJA, Nigeria — President Bola Tinubu has backed a temporary petrol price relief initiative under which the Nigerian National Petroleum Company Limited (NNPCL) will suspend its retail profit margin and sell fuel at cost, as the government moves to cushion Nigerians against rising global energy prices.

The Presidency announced the measure on Thursday, October 8, describing it as part of a broader economic intervention designed to reduce financial pressure on households, transport operators and businesses.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said NNPC Retail would offer the discount for an initial 30-day period, with priority given to commercial transport operators.

Under the arrangement, the company will sell petrol without adding its normal retail profit margin. For example, where the landing cost stands at ₦1,300 per litre, the product will be sold at the same price.

However, the Federal Government stressed that the intervention does not represent a return to the petrol subsidy regime abolished in May 2023.

In a statement issued by presidential spokesman Bayo Onanuga, the government maintained that the initiative was intended to provide temporary relief without reversing its broader energy market reforms.

Beyond the retail discount, the government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol to moderate sudden price fluctuations.

Under the proposed mechanism, refiners and importers would temporarily absorb costs exceeding the ceiling and recover the difference when global crude prices or exchange rates become more favourable.

Oyedele explained that the proposed arrangement would be reviewed monthly, with updated figures published to promote transparency.

“This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppressing them,” the minister said.

The government argued that reducing fuel price volatility could help prevent sudden increases in transportation fares and the prices of essential goods.

As part of the wider intervention, the Presidency also announced plans to increase crude oil supplies to domestic refineries through forward-sale arrangements, expand compressed natural gas infrastructure and strengthen financial assistance to vulnerable households.

According to the government, compressed natural gas is approximately 60 to 70 per cent cheaper than petrol, potentially reducing operating costs for transport businesses.

Additional measures include increased funding for cash transfers, subsidised credit for small businesses, a proposed strategic fuel reserve and efforts to reduce multiple road levies that contribute to transportation and logistics costs.

The government also indicated that it could consider an excess profit tax on energy operators found to be taking undue advantage of consumers, with proceeds directed towards targeted transport relief.

Despite the proposed interventions, questions remain over how quickly the measures will translate into lower pump prices and transportation costs.

The proposed ₦1,350 ceiling applies to the landing or ex-gantry cost of petrol and should not be interpreted as an announced nationwide retail pump price.

The Presidency maintained that restoring a blanket subsidy would undermine earlier reforms and expose the economy to renewed fiscal pressures.

It also said the government was developing additional fiscal measures aimed at bringing inflation sustainably into single digits.

For millions of Nigerians struggling with the rising cost of transportation, food and other essentials, the practical impact of the intervention will depend on its implementation and whether the expected savings reach consumers.

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