‘We’re not feeling impact of discounted petrol price’

From Abdullateef Aliyu & Mohammed Musbau (Lagos), Faruk Shuaibu (Abuja), Mohammed Ibrahim Yaba (Kaduna), Bassey Willie (Bayelsa), Datti Ahmad (Kano) and Mumini Abdulkareem (Ilorin)

Days after the Federal Government announced the sale of discounted petrol across the country, many Nigerians said yesterday that nothing has changed and that fuel prices remain high.

They expressed disappointment over the 30-day petrol discount scheme, saying the intervention has yet to translate into meaningful relief at filling stations, on transport fares and household expenses.

Checks by reporters showed that petrol prices remained high at several Nigerian National Petroleum Company Limited (NNPC) retail outlets, while motorists complained that accessing the announced discount was subject to conditions, including the use of a mobile application.

Commercial drivers also said the limited availability of discounted fuel and long queues at designated stations made the initiative difficult to benefit from.

The Federal Government had announced the temporary discount as part of measures to ease the economic hardship caused by high transportation costs and rising prices of goods and services.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the scheme would cover petrol supplied by NNPC, with public transport operators identified as priority beneficiaries.

However, the implementation has generated mixed reactions, with consumers questioning the reach of the intervention and calling for a broader distribution system that would make the price reduction accessible across retail outlets.

In Abuja, checks showed that several NNPC filling stations were still selling petrol at N1,405 per litre, although customers using the company’s mobile application could access a N66 discount, bringing the price to N1,339 per litre.

Some independent marketers sold petrol at N1,400 per litre, while others charged N1,410.

At the NNPC station in Mabushi, patronage appeared relatively low despite the discount.

The discount was available to motorists using self-service dispensers, with payment made through bank transfers.

A resident, Umar Hussaini, said the savings available under the scheme were too small to make a significant difference to household expenses.

Hussaini said he purchased 31 litres of petrol at N1,405 per litre for N43,555, while noting that the same quantity at N1,339 would cost N41,509, representing savings of N2,046.

“How many people buy 31 litres of fuel to benefit from the N2,000? Also, the N2,000 is little, so for me, we are not saving for anything using the NNPC retail stations,” he said.

Another resident, Jamiu Aliyu, said he was informed that customers needed to download the NNPC application, scan a barcode and provide personal details, including their Bank Verification Number (BVN), to open an account or wallet before accessing the discount.

He also complained that the offer was restricted to self-service pumps, which are not available at all NNPC stations.

According to him, some stations have only one self-service dispenser among about 16 pumps, limiting access to customers who wish to benefit from the reduced price.

Aliyu argued that the conditions made the initiative less inclusive, particularly for motorists without smartphones, mobile data or the willingness to complete the registration process.

Hauwa Ibrahim, another Abuja resident, said she only discovered that the discount was not universal after arriving at a filling station to buy petrol. She said an argument broke out between a customer and a station attendant after the customer insisted on receiving the N66 reduction following his purchase.

The attendant reportedly explained that the discount applied only to customers using the designated application.

Ibrahim said the incident exposed gaps in communication about the eligibility requirements and the conditions governing the scheme.

In Kaduna, commercial drivers also reported that the announced price reduction had yet to become evident at several filling stations.

Zaiyad, a commercial driver in Rigachikun, said he visited an NNPC station on Sunday but found that petrol was still selling at N1,370 per litre. He said he also visited MRS and A.A. Rano filling stations, where petrol was selling at N1,395 per litre, adding that he was yet to see the new discounted price implemented at the outlets he visited.

Similarly, Hassan Kanti, a commercial driver at Kawo Garage in Kaduna, said he had not seen any NNPC station selling petrol at the government-announced discounted rate.

“For now, I bought petrol at N1,400 per litre, and things have not been easy for us as commercial drivers,” he said.

While NNPC retail stations at Hotoro roundabout and Kano Line are selling to motorists at N1385 per litre, other filling stations like AA Rano on Kano-Maiduguri Road, Aliko on Zaria Road and Azman also on Kano-Maiduguri Road are selling at N1420 from the previous rate of N1410. AY Maikifi filling station is selling at N1418 an increase of N23 from his previous rate of N1395 per litre.

This is coming despite NNPC introducing a special discount of N66 for customers using its app.

A commercial tricycle rider Sani Bala said whatever they gained from the business is being spent on fuel. He said the discount introduced by the NNPC has not changed the situation for commercial riders like him, noting that not all NNPC retail stations are selling at N1385 not to talk of the discounted N66.

“The fuel situation in the country has made life difficult. Before now, customers did not negotiate fares because it was within reach but because of the fuel price and exorbitant fares, they always negotiate fares before boarding,” said the rider.

Another rider Tanimu Musa who plies Hotoro-Zoo Road route, said he bought fuel at NNPC Hotoro because other stations are selling above N1400, noting however that his only challenge is when he exhausts his fuel somewhere outside Hotoro area or not close to Kofar Nasarawa, and his only option would be to buy at other stations selling above the NNPC price.

According to him, the discount has not significantly changed the hardship motorists and commuters are facing, saying the price must be reduced to between N500 and N550 to make the desired impact.

Ali Sheka, a motorcycle owner, said he bought fuel at AMMASCO at N1410 on Saturday because going to NNPC to buy at N1385 would not make economic sense to him considering the distance.

“My opinion is that the discount is too small and why will the discount last for only one month? It is really not needed if it is not intended to bring the price further down,” said Sheka, who owns a tailoring shop.

The situation was also similar in Rivers and Bayelsa states, where checks showed that petrol prices remained high despite the Federal Government’s announcement.

In Port Harcourt, an NNPC filling station near Nkpolu Junction was selling petrol at N1,405 per litre. In Yenagoa, Bayelsa State, an NNPC outlet near Tombia Junction and another along Sani Abacha Expressway were selling at N1,400 per litre.

Other retail outlets in Port Harcourt reportedly charged between N1,500 and N1,600 per litre, with some prices reaching N1,900. In Yenagoa, independent marketers sold petrol at between N1,400 and N1,500, while black-market operators charged about N1,600 per litre.

A commercial driver at Ekeki Motor Park in Yenagoa, Adebajo Festus, said the discount had not produced noticeable benefits for transport operators.

He argued that restricting the scheme to NNPC outlets would make it difficult for commercial drivers to access cheaper petrol without losing valuable working hours.

According to Festus, Yenagoa has too few NNPC stations to serve the needs of commercial motorists, leaving drivers with the choice of either joining long queues or buying fuel from other outlets at prevailing market prices.

He explained that commercial drivers often need to purchase fuel quickly to transport passengers and earn money for subsequent trips.

“If you tell us as drivers to buy at NNPC because government has reduced price, how many NNPC filling stations do we have here in Yenagoa, maybe two, how long will

you be in the queue to buy the fuel before taking passengers to where they are going?” he asked.

Festus urged the government to extend the discount to independent marketers to ensure wider access and encourage reductions in transport fares.

Offor Chuks, a commercial driver operating between Yenagoa and Port Harcourt, also said waiting in queues would undermine the purpose of the intervention.

He urged the government to make the discount available across retail outlets so that drivers could purchase petrol conveniently and pass the savings on to passengers.

In Kwara, our correspondent reports that fuel prices at two NNPC retail outlets in Ilorin, Kwara State, remained above N1,300 per litre on Sunday.

Commercial transporters said they had yet to feel the impact of the Federal Government’s announced fuel discount.

A check by Daily Trust at the NNPC mega station along Asa Dam Road showed that petrol was selling for N1,375 per litre, while the NNPC station at Adewole dispensed the product at N1,405 per litre.

A commercial transporter, Mr Malik Sulyman, said the prices remained too high to make any meaningful difference to his business, despite the government’s announcement.

“I still buy fuel at around N1,400 per litre, which means spending about N100,000 for roughly 70 litres. How much will one make after buying a full tank?” he asked.

Sulyman said the discount would only make a significant difference if petrol prices dropped to N1,000 per litre or below.

He argued that the current prices continued to put pressure on transport operators.

“Where we can feel the impact is if the price comes down to N1,000 and below. Apart from fuel, the cost of spare parts is beyond reach. These are the things affecting our business,” he said.

Another commercial transporter, Mr Ishola Moses, also said he had yet to notice any reduction in fuel prices, urging the Federal Government to do more to ease the burden on motorists.

He said the government needed to take further steps to ensure that its intervention translated into tangible relief for transport operators and other Nigerians grappling with high operating costs.

Despite the complaints, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the intervention could provide meaningful economic relief if properly implemented.

The association appealed to the Federal Government to allocate 30 per cent of the total volume of discounted petrol to its members, arguing that their extensive retail network could help extend the benefits to communities without nearby NNPC stations.

PETROAN President, Billy Gillis-Harry, said cheaper petrol for public transport operators could translate into lower fares, reduced logistics costs and improved access to markets for farmers and traders.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, supported the government’s decision to introduce the temporary discount, describing it as a reasonable intervention given Nigeria’s economic difficulties.

Yusuf said Nigerians should support the initiative, particularly after the government clarified that it was not a return to the previous petrol subsidy arrangement.

He, however, urged state and local governments to complement the Federal Government’s efforts by using their increased allocations to address economic hardship and improve public services.

Energy expert Rasheed Adeleke also acknowledged that the discount was relatively small but said the government needed to implement it transparently and deliberately to achieve its intended objectives.

He urged the government to expand the CNG programme, arguing that greater adoption of alternative fuels could offer more sustainable relief over the longer term.

The debate has also revived questions about whether the NNPC discount amounts to a form of subsidy.

In an opinion piece titled “Subsidy Na Subsidy, President Tinubu,” public policy scholar Abidemi Adebamiwa argued that reducing petrol prices through the national oil company still represents the use of public resources to ease citizens’ economic burden, regardless of the terminology used.

Citing Section 53(3) of the Petroleum Industry Act 2021, Adebamiwa noted that the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated hold shares in NNPC on behalf of the Federation.

He argued that any decision by the company to forgo part of its earnings to reduce petrol prices should be understood in the context of public ownership and the need to provide value to Nigerians.

According to him, the economic effect of an intervention should matter more than whether it is described as a discount, temporary margin waiver or price-smoothing measure.

The Federal Government, however, has maintained that the programme is a temporary relief measure intended to ease transportation costs without returning to the previous subsidy framework.

For many Nigerians, the immediate concern remains whether the initiative will make petrol cheaper where they buy it and reduce the cost of daily transportation.

With motorists still reporting high prices, restricted access and uneven implementation, consumers are calling for clearer communication, wider distribution and measures that translate the announced discount into tangible savings.

They argue that unless the intervention reaches more filling stations and produces reductions in transport fares and the prices of essential goods, its benefits may remain limited for households already struggling with the rising cost of living.

Nigerians should perish thought of N1,000 fuel – Expert

Otunba Tunji Oyebanji, an oil and gas industry analyst, while explaining the difference noted that many people confused the discount to mean fuel price would drop below N1000 per litre.

He said: “The discount is at NNPC stations. They told you that if you have the NNPC app and buy petrol and pay through the app, you get a N66 discount on every litre you purchase.

“The other thing they have said is that they have pegged the price at the gantry at a certain level, so the price cannot go beyond that. The problem is that people are confusing two things.

“There is the issue of fixing the price, which means the price cannot go higher than a certain level at the gantry, not at the pump.

“They have not touched anything to do with the pump price. A few people have taken the time to listen to what has been said. NNPC was offering a discount before the Ministry of Finance got involved. They were giving a N66 discount, and they have now said they are extending it. It was supposed to have ended.

“That is the discount. Then there is the cap on the price at the gantry, or landing cost, which I think is N1,365 or thereabout. This means that if the landing cost goes above that level, the people selling the product are expected to absorb the increase in cost.

“So, they will not increase their landing cost. But the government has not touched anything to do with the pump price. The expectation is that this measure will help prevent the price from rising beyond its current level. It does not mean the price will automatically fall.”

“I don’t know where people got the impression that they should expect the price to be N1,000. I think Nigerians also have to move away from the idea that the government will fix prices. This is what is going to happen.

“The operators are the ones who will tell you what the actual situation is. So, I don’t think it is necessarily deceit. Rather, people just want to believe what they want to believe.

“That is how people used to believe that because we are refining locally, the price would automatically become free. How can anything in life be free? Nothing is free. Somebody will pay for it.

“Even if the government pays, what it is doing is foregoing revenue. Somebody has to bear the cost of anything.

“If today they say the price of transport from Lagos to Ikeja is fixed at N100, while the actual cost is N1,000, somebody has to absorb the N900 difference somewhere.

“People are just thinking that, somehow, there will be magic that will make the price come down automatically. It does not work that way.”

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