FG Agrees: NNPC Filling Stations Announce New Petrol Landing Cost After Price Cuts

• NNPC will suspend its petrol retail margin for 30 days, selling at cost as temporary relief—not a nationwide price cut
• Government is negotiating a ₦1,350-per-litre landing-cost ceiling while ruling out a return to blanket fuel subsidies
• Planned relief includes cheaper CNG, cash transfers, business support and a strategic fuel reserve

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The Federal Government says the Nigerian National Petroleum Company Limited (NNPC) has agreed to suspend its petrol retail profit margin for 30 days, offering temporary relief to Nigerians facing rising fuel and transport costs.

Presidential spokesperson Bayo Onanuga disclosed this in a statement on Thursday, saying NNPC Retail would sell petrol at cost during the intervention.

The measure, backed by President Bola Tinubu, forms part of a broader response to global oil price shocks and their impact on households and businesses.

What Nigerians will pay

The Presidency explained that if NNPC’s landing cost stood at ₦1,300 per litre, its retail outlets would sell at that same price, particularly to commercial vehicles.

However, the ₦1,300 figure was an illustration of how the arrangement would work, rather than an announcement of a uniform nationwide pump price.

Actual prices would depend on the applicable cost. The statement also did not establish that every petrol marketer had agreed to reduce prices, according to a report by Premium Times.

The government expressed hope that other operators would follow NNPC’s example, describing the intervention as temporary relief while international energy markets stabilise.

FG negotiates ₦1,350 cost ceiling

Separately, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government was negotiating a ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost.

The proposal concerns costs before retail sales and should not be confused with a confirmed nationwide pump price.

Under the proposed framework, refiners and importers would initially absorb costs above the ceiling, then recover the difference when crude prices or exchange rates improve.

Oyedele said the arrangement would smooth price movements over time, giving consumers and businesses greater certainty.

The ceiling would be reviewed monthly, with relevant figures published to improve transparency.

Presidency rejects subsidy return

The Presidency maintained that NNPC’s temporary margin waiver would not restore the blanket petrol subsidy removed on May 29, 2023.

Oyedele also rejected calls to return petrol prices to pre-reform levels, warning that doing so could cost more than ₦20 trillion annually.

He argued that renewed subsidy spending could worsen pressure on the naira and ultimately push fuel prices higher.

The distinction remains central to the government’s position: NNPC would forgo its retail margin temporarily, while the proposed ceiling would spread cost pressures across different periods.

Neither announcement guarantees an immediate or permanent reduction in every filling station’s prices.

Global shocks deepen local hardship

The interventions follow increases in international crude and refined-product prices linked to the conflict involving the United States, Israel and Iran.

According to the supplied account, disruptions around the Strait of Hormuz intensified supply concerns, with Brent crude rising above $100 per barrel.

For Nigeria, higher oil prices present competing pressures. They can strengthen export earnings while increasing fuel, transport and production costs.

Households already struggling with living expenses face further strain as businesses pass rising logistics costs into consumer prices.

CNG, cash transfers and business support

The government also plans to accelerate compressed natural gas deployment with state governments, saying CNG is between 60% and 70% cheaper than petrol.

It expects transport operators using the cheaper fuel to pass savings to passengers.

Other measures include expanded cash transfers for vulnerable households, subsidised credit for small businesses and consumers, and action against road taxes and levies that inflate logistics costs.

The government would also consider an excess profit tax on operators taking undue advantage of consumers, with proceeds supporting relief measures.

Fuel reserve and refinery supply planned

To strengthen supply security, the government proposed forward crude sales to domestic refineries and a National Strategic Fuel Reserve.

The reserve would release refined products under published rules when disruptions or hoarding threaten availability.

Officials also outlined lower regulatory costs, improved traffic management and more efficient delivery logistics.

NNPC invites Nigerians to buy petrol at a discount

Legit.ng earlier reported that NNPC extended a N66-per-litre discount on petrol, its addition of diesel to the offer and the fuel app customers need to access it.

The promotion runs until October 14, as petrol prices at NNPC outlets range from N1,355 per litre in Lagos and Rivers to N1,435 in Yobe.