The Federal Government has insisted that its 30-day petrol discount initiative does not amount to a return of fuel subsidy, saying the price reduction will be funded by the Nigerian National Petroleum Company Limited’s decision to forgo its retail profit margin.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the arrangement would not draw funds from the federal budget or the Federation Account.
In a statement issued by the Federal Ministry of Finance on Friday, Oyedele explained that NNPC Retail would continue buying petrol from the Dangote Refinery and other suppliers at market prices but temporarily reduce or eliminate its profit margin to pass savings on to consumers.
He distinguished the arrangement from the fuel subsidy programme abolished in 2023, under which government revenue was used to cover part of the cost of petrol.
The discount was announced as part of measures to cushion Nigerians against rising global oil prices, with public transport operators expected to receive priority during the initial 30-day period.
Oyedele argued that the initiative could benefit consumers without undermining NNPC Retail’s business, saying increased sales and customer loyalty could help offset the company’s lower earnings per litre.
He also dismissed concerns that the discount would encourage fuel smuggling into neighbouring countries, arguing that the retailer’s profit margin accounts for less than five per cent of the pump price.
The minister said other measures to ease fuel-related costs included expanding compressed natural gas use in transportation, waiving petrol taxes and duties, and addressing illegal levies that raise transport and logistics expenses.
The government maintained that the measures were intended to provide temporary relief without restoring a blanket fuel subsidy.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the arrangement would not draw funds from the federal budget or the Federation Account.
In a statement issued by the Federal Ministry of Finance on Friday, Oyedele explained that NNPC Retail would continue buying petrol from the Dangote Refinery and other suppliers at market prices but temporarily reduce or eliminate its profit margin to pass savings on to consumers.
He distinguished the arrangement from the fuel subsidy programme abolished in 2023, under which government revenue was used to cover part of the cost of petrol.
The discount was announced as part of measures to cushion Nigerians against rising global oil prices, with public transport operators expected to receive priority during the initial 30-day period.
Oyedele argued that the initiative could benefit consumers without undermining NNPC Retail’s business, saying increased sales and customer loyalty could help offset the company’s lower earnings per litre.
He also dismissed concerns that the discount would encourage fuel smuggling into neighbouring countries, arguing that the retailer’s profit margin accounts for less than five per cent of the pump price.
The minister said other measures to ease fuel-related costs included expanding compressed natural gas use in transportation, waiving petrol taxes and duties, and addressing illegal levies that raise transport and logistics expenses.
The government maintained that the measures were intended to provide temporary relief without restoring a blanket fuel subsidy.
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The Federal Government says its proposed 30-day petrol discount will not require public funds, insisting the initiative is designed to ease fuel costs without restoring the former subsidy regime. The Federal Government has insisted that its 30-day petrol discount initiative does not amount to a return of fuel subsidy, saying the price reduction will be funded by the...
Key takeaways
- The Federal Government says its proposed 30-day petrol discount will not require public funds, insisting the initiative is designed to ease fuel costs without restoring the former subsidy regime.
- The Federal Government has insisted that its 30-day petrol discount initiative does not amount to a return of fuel subsidy, saying the price reduction will be funded by the Nigerian National Petroleum Company Limited’s decision to forgo its retail profit margin.Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the arrangement would not draw funds from the federal budget or the Federation Account.In a statement issued by the Federal Ministry of Finance on Friday, Oyedele explained that NNPC Retail would continue buying petrol from the Dangote Refinery and other suppliers at market prices but temporarily reduce or eliminate its profit margin to pass savings on to consumers.He distinguished the arrangement from the fuel subsidy programme abolished in 2023, under which government revenue was used to cover part of the cost of petrol.The discount was announced as part of measures to cushion Nigerians against rising global oil prices, with public transport operators expected to receive priority during the initial 30-day period.Oyedele argued that the initiative could benefit consumers without undermining NNPC Retail’s business, saying increased sales and customer loyalty could help offset the company’s lower earnings per litre.He also dismissed concerns that the discount would encourage fuel smuggling into neighbouring countries, arguing that the retailer’s profit margin accounts for less than five per cent of the pump price.The minister said other measures to ease fuel-related costs included expanding compressed natural gas use in transportation, waiving petrol taxes and duties, and addressing illegal levies that raise transport and logistics expenses.The government maintained that the measures were intended to provide temporary relief without restoring a blanket fuel subsidy.
- This story is filed under Business/Economy on Glow 99.1 FM.
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The Federal Government says its proposed 30-day petrol discount will not require public funds, insisting the initiative is designed to ease fuel costs without restoring the former subsidy regime. The Federal Government has insisted that its 30-day petrol discount initiative does not amount to a return of fuel subsidy, saying the price reduction will be funded by the...
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Glow 99.1 FM published this story with GlowRy Atuah listed as author.
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October 9, 2026
