The Federal Government has announced a 30-day petrol discount at retail outlets operated by the Nigerian National Petroleum Company Limited (NNPC), with public transport operators set to receive priority under the initiative.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday, October 8, 2026, during a briefing on rising petrol prices and measures to ease the pressure on Nigerians.
Oyedele explained that the arrangement would allow NNPC to sell petrol at cost by forgoing its retail profit margin. He stressed that the initiative was not a return to the fuel subsidy regime removed in May 2023.
The government said the intervention was designed to cushion households and transport operators against rising fuel costs and fluctuations in the international oil market.
Public Transport Operators to Receive Priority
According to the minister, the discount will initially run for 30 days, with priority given to public transport operators nationwide.
The government hopes the initiative will help ease the operating expenses of commercial transporters and reduce pressure on transport fares.
However, the exact amount of the discount per litre and the extent to which transport fares may fall were not specified in the announcement.
The impact on commuters will depend partly on how transport operators respond to any savings from the arrangement.
FG Seeks to Stabilise Petrol Costs
Oyedele also disclosed that the government was negotiating a ceiling of ₦1,350 per litre on petrol’s landing or ex-gantry cost as part of efforts to limit sharp price fluctuations.
Under the proposed framework, refiners and importers would absorb costs exceeding the agreed ceiling and recover the shortfall when market conditions, including crude oil prices and exchange rates, become more favourable.
The minister said the arrangement was intended to moderate sudden increases in fuel costs rather than impose permanent price controls.
The proposed ceiling is subject to negotiations and periodic reviews.
Government Rules Out Return of Fuel Subsidy
The Federal Government maintained that the new measure would not restore the former blanket petrol subsidy.
Instead, NNPC would temporarily forgo its retail profit margin and sell fuel at its actual cost, while the government pursues other measures to cushion the effects of rising energy prices.
The Presidency has said the intervention is intended to provide temporary relief without reversing the broader fuel market reforms introduced in 2023.
Other Measures to Ease Rising Fuel Prices
The petrol discount forms part of a broader package of measures announced by the government to reduce the impact of higher energy costs on households and businesses.
Other proposed interventions include expanding compressed natural gas (CNG) adoption, increasing support for vulnerable households, reducing unnecessary regulatory costs and improving the efficiency of fuel distribution and transportation.
The government also plans to establish a strategic fuel reserve to help address supply disruptions and reduce the risk of artificial scarcity.
Officials say the measures are intended to protect consumers while supporting a more stable energy market.
The effectiveness of the 30-day petrol discount will depend on its implementation, the level of savings passed on to transport users and developments in global oil prices and the foreign exchange market.
