FG Offers 30-Day Petrol Discount, Targets ₦1,350 Fuel Cost Ceiling

…says measure will prioritise public transporters as it moves to cushion impact of high fuel prices.

The Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL) as part of fresh measures aimed at cushioning the impact of high fuel prices and reducing volatility in the downstream petroleum market.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday, October 8, 2026, during a briefing in Abuja on fuel prices and subsidy-related issues.

Oyedele said the temporary discount would initially prioritise public transport operators nationwide, stressing that the arrangement should not be interpreted as a return to fuel subsidy.

“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.”

FG Targets ₦1,350 Ceiling on Petrol Landing Cost

Alongside the 30-day discount, the government is negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol, subject to monthly reviews.

Oyedele explained that the proposed ceiling does not mean motorists will buy petrol at ₦1,350 per litre at filling stations.

Instead, the mechanism is intended to reduce the extent to which fluctuations in global crude oil prices and foreign exchange rates are immediately reflected in domestic petrol prices.

“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable,” he said.

According to the minister, where the actual cost rises above the proposed ceiling, refiners and importers would initially absorb the difference and recover it later when market conditions improve.

He described the arrangement as neither a subsidy nor conventional price control, but a mechanism designed to smooth out petrol prices and reduce sudden price movements.

Why Federal Government Wants More Stable Fuel Prices

Oyedele said the government was responding to continuing pressure on households and businesses following increases in fuel and transportation costs.

He argued that predictable fuel prices could be less disruptive to consumers and businesses than frequent sharp increases and subsequent reductions.

“The reasoning is simple: ₦1,400 a litre today and ₦1,400 a litre tomorrow is better than ₦1,500 a litre today and ₦1,300 a litre tomorrow,” Oyedele said.

He added that fuel-price volatility creates uncertainty and additional costs, noting that sharp increases often do not reverse at the same pace.

The government plans to review the proposed ₦1,350 ceiling monthly and publish the figures as part of its transparency measures.

More Measures Planned to Cushion Fuel Price Impact

The petrol discount and proposed landing-cost ceiling form part of a broader package of measures announced by the government.

The government is also exploring forward crude-oil sales to local refiners as domestic crude production increases. The arrangement is intended to provide committed crude supplies to domestic refiners and reduce their exposure to international market fluctuations.

Other measures outlined include efforts to eliminate illegal levies and road-use charges imposed by state authorities that increase transportation costs.

The government also plans to increase funding for cash transfers to vulnerable households and provide additional credit support for small businesses.

CNG Rollout, Fuel Reserve and Transport Support

The Federal Government also plans to accelerate the rollout of compressed natural gas (CNG) for transport operators, with the expectation that lower operating costs would translate into reduced fares for commuters.

Oyedele said sanctions could be imposed on operators who exploit consumers, with proceeds from enforcement actions potentially channelled into transport support.

The government is further considering an excess profits tax and targeted vouchers for low-income earners, alongside measures aimed at reducing regulatory costs and red tape that contribute to higher prices.

Plans are also underway for a national strategic fuel reserve to strengthen supply security and guard against disruptions or hoarding.

According to the minister, improved traffic management and logistics would also form part of efforts to reduce fuel consumption, while the government intends to leverage NIPOST address codes to help lower logistics costs.

Oyedele said the measures would be implemented in collaboration with state governments, with the broader objective of ensuring that support reaches vulnerable Nigerians without creating additional pressure on the wider economy.