Slow take-off nationwide as NNPC stations retain old rates

The Federal Government-powered 30-day petrol discount at Nigerian National Petroleum Company Ltd. (NNPCL) filing stations is off to a slow start across the states, with mixed reactions from Nigerians on the palliative measure.

The discount comes with a ceiling of N1350 per litre on petrol landing costs.

But the situation in many of the states yesterday was that petrol price remained largely unchanged.

Also largely unaffected at press time was the high transport fare which the discount was meant to mitigate.

Finance and Coordinating Minister of the Economy Taiwo Oyedele who broke the news of the discount on Thursday, and the NNPC Ltd insisted yesterday that the initiative was a temporary customer relief measure and did not amount to the restoration of petroleum subsidy.

Although, NNPC outlets in Lagos have been dispensing fuel at a discount, transport fares across the metropolis remained unchanged yesterday.

In Abeokuta, the Ogun State capital, there were slight queues at NNPC outlets.

A litre went for N1,355 as against the old N1380 at the NNPC Mega station near the Obasanjo Presidential Library.

A source at the outlet said : “Even with the reduced price of N1,355, there is still a N66 discount for customers who use our App to make payment.

“We are optimistic that the price will still drop further. Most of motorists are aware of the directive by Federal Government, and we have started sensitising those who are not aware about the price reduction in our outlets across the town.”

Motorists described the step as a good initiative.

A commercial tricycle rider at Ita Eko area in Abeokuta, Afeez Solaja described the reduction in fuel price as a welcome development, saying reducing fuel price would help in bringing down the cost of transportation and food.

“Yes, it is good news for us. Fuel price at NNPC stations is coming down, but plead with government for further reduction to the bearest minimum.”

NNPC stations at Oke-Ayepe, Okini, Abere, Lameco, Powerline, Ogo-Oluwa and Ringroad areas of Osogbo have complied with the new order,but the transport fares remain unchanged.

Some commuters said they expected the discount to translate into immediate lower transport fares.

They lamented that transport fares often increase whenever petrol prices rise, but operators are usually reluctant to reduce them when prices fall.

A civil servant, Mr Ope Bello appealed to the Osun State government to engage transport unions and other stakeholders to promote fair pricing and ease the burden of transportation on residents.

He urged transport operators to review their fares if the reduction in petrol prices resulted in lower operating costs.

A commercial driver simply identified as Muhideen said “the discount is insignificant for me to now be looking for NNPC stations to buy fuel every time.”

He said transport operators also incur other expenses, including vehicle maintenance, spare parts, tyres and daily operational costs, which may affect their decisions on fares.

Petrol is still selling for ₦1,430 per litre in Maiduguri,Borno State and ₦1,435 in Damaturu,Yobe State.

Officials at the outlets said they had received no instruction from their superiors for any discount.

Fuel price is also yet to reduce in Anambra,Edo,Delta,Kwara ,Kogi,Benue,Nasarawa and Kano states.

In Abia State ,NNPC outlets have started dispensing fuel at N1350 but that has had no impact yet on transport fares.

In Ondo State, commercial drivers said they are willing to reduce transport fares if the reduction in the price of fuel gives them sufficient allowance to do so.

Mr Wumi Iledare, a Professor Emeritus of Petroleum Economics, Louisiana State University (LSU) Energy Institute, said the initiative could be defensible if it remained a targeted, temporary welfare intervention rather than a return to universal fuel subsidy.

Iledare said the purpose should not be to make petrol artificially cheap, but to ease transport costs, limit their spillover into logistics and consumer prices.

He said the initiative should provide short-term relief to vulnerable households.

“Prioritising public transporters may be justified only if the savings ultimately reach passengers.

“The decisive question is simple: who pays for the discount? If NNPC Ltd sells below economic cost and government later reimburses it or an implicit public liability arises. The measure is subsidy-equivalent.

“The economics are different only if NNPCL transparently funds the discount from a commercial margin for a strictly limited period without creating a fiscal obligation.

“Government should therefore disclose the discount per litre, eligible volumes, financing source, maximum fiscal exposure, mechanism for passing savings to passengers, and the final financial impact on NNPCL.

“These are not merely accounting details; they determine whether the policy is genuine welfare support or subsidy through another channel,” he said.

Mr Auwal Rafsanjani, the Executive Director of Civil Society Legislative Advocacy Centre (CISLAC) said the intervention risked becoming another temporary announcement that failed to address the suffering of citizens.

Rafsanjani said Nigerians deserved accountability, not economic promises without measurable results.

He called for transparency regarding the proposed N1,350 petrol price and the 30-day NNPCL discount.

“What will Nigerians actually pay for the pump price of petrol? Who is financing the discount, how much will it cost, and what happens after 30 days?

“ More importantly, how will this intervention reduce transportation fares, food prices and the cost of essential commodities across the country?

“Government must explain where the savings from petrol subsidy removal have gone, how much was realised, and what measurable improvements will reach the ordinary Nigerians,” he said

He asked the Federal Government to confront the real drivers of economic hardship, excessive governance costs, and policies that undermined businesses and livelihoods.

According to him, government must demonstrate the same financial discipline and sacrifice it demands from citizens by cutting unnecessary expenditure, expanding affordable transportation and protecting vulnerable households.

Ex-IYC president Eradiri hails Tinubu on fuel price cut, challenges governors

Former President of the Ijaw Youths Council (IYC) Worldwide, Udengs Eradiri, hailed President Bola Tinubu’s fresh efforts to reduce fuel prices and cost of living across the country.

Eradiri appealed to state governors to emulate Tinubu, insisting that state governments must deploy their increased revenues to ease the economic hardship facing Nigerians.

Eradiri said Tinubu’s renewed push to reduce fuel prices despite rising global oil prices demonstrated his administration’s concern for the welfare of the masses.

He urged governors to complement the President’s efforts with practical measures to reduce transportation costs and other living expenses.

He called on the governors to take advantage of the additional funds accruing to their states following the removal of the petrol subsidy to introduce targeted interventions that would provide direct relief to residents.

Eradiri said the President’s latest approach to reducing fuel cost, despite the surge in global oil prices, showed that he was concerned about the economic difficulties confronting ordinary Nigerians.

He, however, expressed concern that many governors had yet to respond adequately to the President’s earlier directive to use the additional revenues available to them to reduce transportation costs.

According to him, lowering transportation costs would have a far-reaching impact on the prices of goods and services because of the central role transport plays in the movement of people and commodities.

NNPC discount not fuel subsidy, Oyedele insists

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the NNPC’s decision to reduce petrol prices through a discount on its retail profit margin does not amount to a return of fuel subsidy, insisting that the arrangement will not require public funds.

Oyedele, who made the clarification in a statement issued in Abuja yesterday , said the discount was a commercial decision by NNPC Retail Limited to reduce its earnings per litre and pass the savings to customers.

He said the initiative, which has lowered petrol prices at NNPC retail outlets since October 1, 2026, would provide some relief to households, commuters and transport operators struggling with high fuel costs.

According to him, the company can reduce its retail margin to attract more customers, increase sales and strengthen its business without requiring the government to pay part of the cost of petrol. “The discount lowers prices for consumers and can strengthen NNPC retail’s business and profits at the same time,” Oyedele said.

He explained that a retail margin is the difference a marketer adds to the price it pays for petrol to cover its business costs and make a profit. A discount occurs when the retailer reduces that margin, temporarily accepts no profit on the product or passes part of its earnings to customers.

A fuel subsidy, by contrast, involves the government paying part of the cost of petrol to keep the price paid by consumers below what it would otherwise be.

Oyedele said the distinction was important because government-funded subsidies draw on public revenue that could otherwise be spent on education, healthcare, salaries and infrastructure.

He maintained that the Federal Government had ended the petrol subsidy regime in 2023 and was not bringing it back through the NNPC Retail discount.

The minister said the discount would be financed entirely from NNPC Retail’s retail margin and would not be paid for through the Federal Government’s budget or the Federation Account.

He explained that NNPC Retail purchases petrol from the Dangote Refinery and other suppliers at prevailing market prices before adding its retail margin to determine the pump price.

Under the discount arrangement, the company reduces the margin it would normally earn, allowing motorists to buy petrol at a lower price without the government paying the difference.

Oyedele said the arrangement was different from selling crude oil belonging to the Federation below its market value.

According to him, if the government sells its crude oil below the prevailing market price, the difference represents a loss of public revenue and could amount to a subsidy.

He maintained that the NNPC Retail initiative does not involve such a loss because the company is reducing its own commercial earnings rather than asking the government to cover the discount.

Oyedele said the discount was consistent with the role for which NNPC Retail Limited was established more than 20 years ago.

The minister noted that NNPC Retail had historically sold petrol at prices below those of some other marketers, adding that its latest decision to reduce its margin was a continuation of that commercial approach.

He said any retailer could adopt a similar strategy to attract customers, improve sales and strengthen its position in the market.

The minister also dismissed concerns that reducing the retail margin would necessarily lower NNPC Limited’s profits and reduce the dividends paid to the federation.

He said a smaller profit on each litre of petrol sold could be offset by an increase in sales volumes, while the discount could encourage customers to remain loyal to the company even after the offer ends.

According to him, higher sales and stronger customer loyalty could improve the company’s overall performance and potentially increase the dividends it pays to the government.

He described the arrangement as one that could benefit consumers through lower prices while strengthening the company’s business.

Oyedele said margin discounts were a common commercial practice among retailers and should not automatically be interpreted as evidence of government intervention in the pricing of petroleum products.

The minister further argued that the discount was unlikely to distort the domestic petrol market or create a significant new incentive for smuggling.

He said the retail margin accounts for less than five per cent of the pump price, limiting the extent to which a discount on that margin could reduce the final price.

According to him, petrol prices in neighbouring countries are between 20 and 40 per cent higher than those in Nigeria.

He therefore argued that the reduction in NNPC Retail’s margin would not substantially widen the price difference between Nigeria and neighbouring markets.

Oyedele explained that keeping prices relatively stable would help consumers and businesses plan their spending, particularly because transport fares often rise quickly when fuel prices increase but may not fall at the same pace when fuel becomes cheaper.

“The reasoning is simple. 1,400 naira a litre today and 1,400 tomorrow is better than 1,500 today and 1,300 tomorrow, because volatility itself adds to uncertainty and cost,” he said.

He added that the proposed ceiling would be reviewed monthly and adjusted when market conditions required, with the relevant figures published to promote transparency.

On its part, the NNPC said the initiative was designed to cushion the impact of rising fuel prices on households, businesses and the wider economy amid elevated global crude oil prices linked to the conflict in the Middle East.

Chief Corporate Communications Officer of NNPC Andy Odeh,said in a statement that the organization was committed to supporting Federal Government’s efforts to ease the burden of rising fuel costs on Nigerians.

“This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy,” he said.

He said that the initiative was limited to its retail outlets and did not establish a uniform national pump price or change the market-based pricing framework governing petroleum products.

He described the discount as a practical intervention to support customers during a period of heightened global market uncertainty while maintaining commercially responsible operations.

He urged Nigerians to disregard interpretations suggesting that the initiative represented a return to fuel subsidy, insisting that the discount was strictly a customer relief measure.

PETROAN seeks allocation of 30 per of cent discounted petrol to members

The Petroleum Products Retail Outlets Owners Association (PETRAON) urged that Federal Government to allocate the discounted Premium Motor Spirit (PMS) petrol to its members.

PETROAN based the request on its extensive network of retail outlets that cuts across virtually all local government areas, communities and villages in Nigeria.

The National President of PETROAN, Dr. Billy Gillis-Harry, who made the request in a statement also commended the Federal Government for recognising the strategic importance of transportation to the Nigerian economy.

The association said allocating 30 per cent of the total volume of discounted petrol to PETROAN would facilitate wider national distribution and ensure that the benefits of the intervention reach Nigerians across both urban and rural communities.”

The association also stated that, given its extensive grassroots presence and direct relationship with petroleum consumers, PETROAN is strategically positioned to champion and pilot the Federal Government’s CNG initiative across the country.

According to PETROAN, leveraging its existing retail network for CNG deployment would accelerate accessibility, encourage adoption of cleaner and more affordable alternative fuel, and support the Federal Government’s broader energy-transition and economic objectives.

PETROAN, said its retail outlets have a presence in some of the most remote and underserved locations across Nigeria, including communities where NNPC retail outlets are not available.

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