The Federal Government has announced a series of measures to cushion Nigerians from the impact of rising petrol prices amid renewed volatility in global crude oil markets.
Under the new measures, NNPC Retail will forgo its petrol retail profit margin for the next 30 days and sell fuel at cost, particularly to support commercial transport operators and vulnerable households.
The decision was announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following an agreement by the Nigerian National Petroleum Company (NNPC).
Oyedele explained that if the company’s landing cost, for example, is ₦1,300 per litre, NNPC Retail would sell at the same price rather than adding a retail profit margin.
The government also announced plans to negotiate a ₦1,350 per litre ceiling on the ex-gantry or landing cost of petrolto help reduce sudden price increases.
According to Oyedele, the arrangement is intended to smooth out price fluctuations and is not a return to the petrol subsidy regime.
The government is also planning forward sales of crude oil to domestic refineries, increased cash transfers for vulnerable households and subsidised credit for small businesses and consumers.
Other measures include an accelerated rollout of Compressed Natural Gas (CNG), which the government says is significantly cheaper than petrol, as well as efforts to reduce road taxes, levies and other costs that contribute to higher transport and logistics expenses.
The Federal Government is further considering an excess profit tax on operators accused of taking undue advantage of consumers along the energy value chain.
It also plans to establish a National Strategic Fuel Reserve to help protect consumers and businesses from future supply disruptions, artificial scarcity and sharp price volatility.
The Presidency stressed that the measures do not amount to a restoration of blanket petrol subsidy.
It said the focus is on protecting vulnerable Nigerians from short-term global market shocks while maintaining the broader fuel-sector reforms.
The government also announced plans to work on additional fiscal measures aimed at reducing inflation and improving economic conditions for Nigerians.
