FG Targets Transport Costs With 30-Day Petrol Discount at NNPC Stations

The Federal Government has introduced a 30-day petrol discount through Nigerian National Petroleum Company Limited (NNPC) filling stations as part of measures aimed at easing the pressure of rising fuel and transport costs on Nigerians.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday, October 8, 2026, during a press briefing in Abuja on petrol prices and the government’s response to the recent increase in fuel costs.

Under the arrangement, petrol sold through NNPC stations will be offered at a discount for an initial period of 30 days, with public transport operators given priority. The government said the aim is to provide immediate relief to Nigerians, particularly those who depend on public transportation.

Oyedele stressed that the measure should not be regarded as a return to the former petrol subsidy regime. According to him, the government will allow NNPC to sell the product at cost during the period rather than reintroducing a blanket subsidy.

The intervention comes at a time when higher petrol prices have continued to put pressure on transportation, food prices, household expenses and the operating costs of businesses. The government is therefore attempting to reduce the immediate impact of fuel costs while working on measures intended to provide longer-term stability.

The 30-day discount is only one part of a wider package announced by the Federal Government to respond to rising petrol prices. The government also disclosed plans to negotiate a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.

Under the proposed price arrangement, refiners and importers would absorb temporary increases in costs above the agreed ceiling and recover the difference later when market conditions improve. The government said the proposal is designed to reduce sharp price movements rather than impose a fixed pump price.

The government also plans to increase forward sales of crude oil to domestic refineries as production rises. The arrangement is intended to give local refiners greater certainty over the cost and supply of crude while reducing the effect of international market fluctuations on domestic petrol prices.

Another measure involves tackling illegal levies imposed on the movement of goods and services. The government said it would work with state governments to reduce such charges because they add to transportation and logistics costs, which eventually affect the prices paid by consumers.

The Federal Government also announced plans to increase direct support for vulnerable Nigerians through cash transfers, while providing subsidised credit for small businesses and consumers affected by the economic pressure.

It further plans to accelerate the rollout of compressed natural gas vehicles as an alternative to petrol-powered transportation. The government said the move could reduce transport costs, with transport operators expected to pass the savings from CNG use to passengers.

The new measures also include plans for an excess profit tax on businesses found to be taking undue advantage of the situation along the energy value chain. The government said revenue from the proposed measure would be used to provide support to those most affected by high fuel prices.

Other measures include reducing unnecessary regulatory costs for businesses, establishing a National Strategic Fuel Reserve and improving traffic and logistics management to reduce fuel consumption and the cost of moving goods.

The government said the strategic fuel reserve would help protect the country from supply disruptions and reduce the possibility of artificial scarcity and market manipulation. Refined products would be released under clear rules when global disruptions or hoarding threaten supply and price stability.

The intervention comes against the background of renewed pressure over the cost of petrol in Nigeria. NNPC’s latest reported pump price places petrol at N1,355 per litre in Lagos and Rivers, while Abuja is listed at N1,370 per litre.

Oyedele maintained that the government was not seeking to return to a blanket subsidy, arguing that such a policy could create greater financial problems for the country in the long term.

Instead, the government said it was pursuing targeted interventions designed to cushion households, businesses and transport users while allowing the petroleum market to continue operating.

For millions of Nigerians, however, the immediate question will be whether the 30-day discount will translate into lower transport fares and reduced pressure on household expenses. The priority given to public transport operators means the effectiveness of the programme will also depend on whether the benefit reaches passengers.

The government has therefore placed the 30-day intervention at the centre of its immediate response to the rising cost of petrol, while its other proposals are aimed at preventing sharp price increases from continuing to spread through the wider economy.

The temporary discount is expected to provide short-term relief, but the longer-term impact will depend on how the proposed price ceiling, crude supply arrangements, CNG rollout and other measures are implemented after the initial 30-day period.