By JKNewsMedia
THE FEDERAL Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL), prioritising public transport operators, while negotiating a N1,350 per litre ceiling on petrol’s ex-gantry or landing cost to moderate price fluctuations.
JKNewsMedia.com reports that the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the measures on Thursday during a press briefing on fuel prices and subsidy-related issues in Abuja, saying the discount was intended to ease the burden of rising petrol prices on households, businesses and transport operators.
Oyedele said the discount would initially run for 30 days, stressing that the arrangement did not amount to a return to the petrol subsidy regime.
“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,” he said.
The government is also negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol under a proposed price-modulation mechanism designed to moderate the effects of fluctuations in international crude oil prices and foreign exchange rates.
Oyedele clarified that the proposed ceiling would not constitute a fixed pump price or guarantee that petrol would sell for ₦1,350 per litre at filling stations.
Instead, the mechanism aims to limit sudden increases in the underlying cost of petrol and slow the transmission of external market shocks to consumers.
Under the proposed arrangement, refiners and importers would initially bear any cost above the agreed ceiling, with an opportunity to recover the shortfall when market conditions improve.
The minister said the ceiling would undergo monthly reviews to reflect prevailing market conditions, with the relevant figures published to promote transparency.
“Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of ₦1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable,” Oyedele said.
He explained that the policy sought to protect consumers from sharp and unpredictable price changes, noting that sudden increases could impose immediate costs on households and businesses, while subsequent price reductions might not happen as quickly.
“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,” he said.
Atiku Derides The Policy
However, the announcement has drawn criticism from former Vice President Atiku Abubakar’s media office, which questioned the accessibility, financial implications and timing of the government’s intervention.
Reacting via a statement issued in Abuja on 8 October 2026, the Atiku Media Office described the measures as contradictory, arguing that the Tinubu administration had previously rejected Atiku’s proposal for a production-based subsidy to make locally refined petrol more affordable but was now considering government-negotiated price limits and discounted sales.
The office questioned the government’s position that the proposed measures did not amount to a subsidy, particularly because refiners and importers could initially bear costs above the proposed ceiling and recover the shortfall later.
“An intervention that transfers costs, postpones their recovery or uses public resources to make petrol cheaper raises legitimate subsidy-related questions that cannot be dismissed by changing its name,” the statement said.
It also questioned how the 30-day discount would reach Nigerians who live in communities without NNPC filling stations.
Citing NNPC Retail’s network of more than 900 outlets nationwide, the office said the distribution of the stations across the 36 states and the Federal Capital Territory was uneven, potentially limiting access for some consumers.
The statement also cited an NNPC report from July 2026, which it said placed petrol availability across the company’s retail network at 52 per cent. It questioned how the government would deliver nationwide relief through a network where fuel availability remained inconsistent.
Atiku’s media office argued that Nigerians needed lasting relief from high petrol prices and transportation costs rather than a temporary discount that would expire after 30 days.
It renewed its support for Atiku’s production-based subsidy proposal, which it said would support domestic refining through transparent, targeted and time-bound crude-pricing arrangements, with safeguards to ensure that lower production costs translated into lower pump prices.
The office also pointed to the Tinubu administration’s discussions on forward crude sales to domestic refiners, arguing that such measures strengthened the case for examining production-side interventions.
“The Tinubu government cannot condemn Atiku’s proposal in September and embrace the logic of petrol-price intervention in October while pretending there is no contradiction,” the statement said.
The office urged the government to publish the details of the proposed price-modulation mechanism, disclose its financial implications, identify participating outlets and explain how Nigerians without access to NNPC stations would benefit.
It also called for clarification on how the intervention would translate into lower transport fares, cheaper food and reductions in the cost of living.
The criticism followed comments by Daniel Bwala, President Bola Tinubu’s Special Adviser on Policy Communication, who acknowledged on Channels Television’s Politics Today on Wednesday that more Nigerians had fallen into poverty as a consequence of the administration’s economic reforms.
Atiku’s media office said the admission raised further questions about why the government had taken so long to consider interventions it had previously dismissed when the former vice president proposed them.
“If the Tinubu administration has finally recognised that government intervention is necessary to protect Nigerians from unbearable petrol prices, it should have the humility to acknowledge that reality instead of playing politics with the welfare of citizens,” the statement said.
The office also compared the current situation with the period between 1999 and 2007, arguing that petrol subsidy had not been removed and taxes had not been increased during that era, while Nigeria’s economy grew to become Africa’s largest.
It maintained that the government should prioritise Nigerians’ welfare over political considerations and its pursuit of another term.
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