๐๐๐ง๐ฒ ๐ฌ๐ข๐๐๐ฌ ๐ญ๐จ ๐ ๐’๐ฌ ๐๐-๐๐๐ฒ ๐ฉ๐๐ญ๐ซ๐จ๐ฅ ๐๐ข๐ฌ๐๐จ๐ฎ๐ง๐ญ ๐๐ญ ๐๐๐๐ ๐ฌ๐ญ๐๐ญ๐ข๐จ๐ง๐ฌ
Fuel Station
Rolls out other measures to cushion impact of rising petrol prices
Atiku, Makinde, SDPโs Adebayo fault FGโs 30-day petrol discount, demand lasting relief
Emeka Agu Jnr
The Federal Government has announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL) with public transport operators to receive priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing on petrol prices and subsidy-related issues in Abuja.
Oyedele said the measure was not a return to petrol subsidy, explaining that the government would instead allow NNPCL to sell the product at cost during the period.
He said the discount would initially run for 30 days, with public transport operators prioritised nationwide.
โWe 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, itโs not a subsidy; the government is just saying we sell to you at cost,โ Oyedele said.
He also announced other measures aimed at cushioning the impact of rising petrol prices on households, businesses and transport users across Nigeria.
According to him, the measures are designed to provide relief to Nigerians affected by higher petrol prices without returning to a blanket fuel subsidy.
The measures are: More crude oil for local refineries-The government plans to increase forward sales of crude oil to domestic refineries as crude production rises.
The move is expected to make more crude available to local refiners and reduce their exposure to fluctuations in international crude prices.
According to the government, the arrangement would help provide greater stability for domestic petrol prices.
Thirdly, N1,350 ceiling on petrol landing cost- The Federal Government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.
Under the proposed arrangement, refiners and importers would absorb the difference when costs rise above the ceiling and recover it when crude prices or the exchange rate become more favourable.
Oyedele said the arrangement was designed to smooth out price fluctuations rather than permanently control petrol prices.
The ceiling would be reviewed monthly, with the figures published for transparency.
Fourthly, Removal of illegal levies- The government will work with state governments to tackle illegal road taxes and levies that increase the cost of transporting goods and services.
The measure will be pursued under the 2025 tax reform laws.
The government believes reducing these additional costs could help lower the cost of moving goods across the country.
The fifth measure is More support for vulnerable Nigerians- The Federal Government plans to increase cash transfers to vulnerable households affected by rising living costs.
It also plans to provide subsidised credit to small businesses and consumers.
The government said it would also work with the National Assembly on enhanced tax relief for low-income earners under the 2027 Finance Bill.
Sixth, Faster rollout of CNG vehicles- The government will accelerate the deployment of compressed natural gas (CNG) vehicles across Nigeria.
Federal and state governments are expected to support the rollout, while transport operators will be encouraged to pass savings from the cheaper fuel source on to passengers.
The government sees wider CNG adoption as a way of reducing dependence on petrol and lowering transportation costs.
Seventh, Excess profit tax for operators- The Federal Government said it would consider an excess profit tax for businesses found to be taking undue advantage of the situation along the energy value chain.
Oyedele said proceeds from the measure would be used exclusively to cushion the impact of fuel prices.
The government plans to channel the funds into transport support or vouchers for urban minimum-wage earners who are particularly vulnerable to rising costs.
Oyedele announced Reduction of regulatory costs as the eight measure aimed at cushioning the impacts of rising petrol prices. The government, Oyedele said, will seek to reduce unnecessary regulatory requirements and costs imposed on businesses.
According to the government, these costs ultimately increase the prices of goods and services paid by consumers.
Reducing regulatory burdens is therefore expected to help businesses manage higher operating costs and limit further price increases.
The ninth measure is Establishment of a National Strategic Fuel Reserve. The Federal Government plans to establish a National Strategic Fuel Reserve to strengthen the countryโs fuel supply security.
Under the proposed system, refined petroleum products could be released into the market during global disruptions or periods of artificial scarcity.
The government said the reserve would not be used to fix petrol prices but would help prevent supply disruptions, market manipulation and sudden price shocks.
The tenth measure is Better traffic and logistics management. The government, Oyedele said, plans to improve traffic management in urban areas to reduce fuel consumption and logistics costs.
It also intends to use NIPOST address codes to make logistics operations more efficient and cheaper.
He added that the government believes better traffic and delivery systems could reduce the amount of fuel wasted on transportation while lowering the cost of moving goods.
Oyedele said the government would instead use targeted measures to support those most affected while protecting the wider economy.
โTo be perfectly clear, none of these measures restores a blanket subsidy. To do so would amount to creating longer-term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk,โ he said.
Meanwhile, the presidential candidate of the African Democratic Congress, (ADC), Atiku Abubakar, has faulted the Federal Governmentโs proposed 30-day petrol discount at Nigerian National Petroleum Company Limited stations,
In a statement issued on Thursday by the Director of Strategic Communication of the ADC Presidential Campaign Council, Phrank Shaibu, the former Vice President described the measure as a temporary intervention that would not address the hardship caused by high fuel prices.
Atiku described the initiative as a โpanic-driven publicity stuntโ and accused the administration of offering temporary relief instead of addressing the wider cost-of-living crisis.
ย โAtiku totally rejects this calendar-scheduled, election-laced subsidy package. Nigerians are not fools to be offered a month of discounted fuel after years of punishing prices and then expected to forget the hardship when the discount expires. This is shameless and heartless,โ he said.
The former Vice President questioned what would happen after the 30-day period, arguing that Nigerians would still face high fuel, transport and food costs.
โWhat happens on Day 31? Nigerians wake up to the same brutal prices, the same punishing transport fares and the same rising cost of food. The government cannot manufacture relief for one month and expect Nigerians to applaud while the hardship remains,โ he said.
Atiku also questioned the scope of the intervention, noting that it would be limited to NNPC stations. He said the government had yet to disclose how much motorists would save per litre or guarantee that savings by transport operators would translate into lower fares for passengers.
The former Vice President further argued that the governmentโs decision to introduce the temporary measure supported his proposal for production support tied to locally refined petrol.
โThis volte-face proves that the production-support proposal I have advanced is workable, achievable and not complicated. The Tinubu government and its spin doctors have tried to make it sound impossible, yet they are now reaching for a temporary subsidy-style intervention because the pain has become impossible to ignore,โ Atiku said.
He reiterated his proposal for capped and budgeted production support tied to fuel refined in Nigeria, with safeguards to ensure that the benefits reach consumers while supporting domestic refining.
โNigerians need lasting relief, not a countdown to the return of hardship. Tinubuโs government cannot spend years telling Nigerians to endure, then offer 30 days of relief and call it a solution,โ he said.
Atiku added, โTinubu made life expensive. I will make life affordable again.โ
Reacting, the Makinde/Daura Presidential Campaign Organisation (MDPCO) rejected the Federal Governmentโs 30-day petrol discount, describing the measure as a โdeceitful and failed media stunt.โ
The campaign group of the Allied Peoples Movement (APM) presidential candidate, Governor Seyi Makinde, said the discount announced by the President Bola Tinubu-led administration was inadequate, arguing that Nigerians expected a more significant reduction in the price of petrol.
MDPCO in a statement signed by its Director of Strategic Communications, Richard Ihediwa, described the discount as an โoffensive and provocative attempt to beguile Nigerians.โ
The organisation said the measure amounted to a โslap on the faceโ of Nigerians who were expecting an impactful reduction in petrol prices.
It questioned why, in its view, the administration had made what it described as significant increases in petrol prices but was now offering what it called a โteeny N60โ reduction.
The group also criticised the decision to limit the discount to a 30-day period, arguing that the temporary measure would not provide lasting relief to Nigerians.
โThe fact that the minuscule reduction will only be on scantly located NNPC owned retail filling stations and for a period of one month clearly shows that the Tinubu administration has come to its wits end and become bereft of solutions,โ the statement said.
The campaign organisation also faulted the Federal Governmentโs proposal to sell crude oil to domestic refineries at a dollar-denominated rate, describing the arrangement as โdistasteful and offensive to our status as an oil producing nation.โ
The Makinde campaign maintained that Nigerians deserved what it called an โimpactful reductionโ in petrol prices rather than what it described as a temporary measure ahead of the 2027 elections.
The organisation said it remained committed to supporting Seyi Makinde, the Allied Peoples Movement (APM) presidential candidate, whom it described as capable of providing what it called an honest and responsive government.
The Social Democratic Party (SDP) presidential candidate Prince Adewole Adebayo, also likened the Federal Governmentโs 30-day petrol discount through the Nigerian National Petroleum Company Limited (NNPCL) to the popular television series โFuji House of Commotion.โ
Reacting to the announcement during an interview on Channels Televisionโs Politics Today, on Thursday, Adebayo questioned the basis and duration of the intervention, describing it as a temporary gesture rather than a long-term policy.
โI saw the visual and heard of the policy or statement; I donโt know. There is no plan behind it, so I cannot know whether it is a policy or a gesture, but it immediately reminds me of a series on television in the 90s called โFuji House of Commotion.โ
โOne thing they are presenting is Tinubuโs house of commotion. It does not make any sense in any way.
โNumber one, none of those people who are seated there represent the NNPC. Now, there is no account established in the Ministry of Finance that deals with the petroleum subsidy account.
โOne month is not short term; it is not medium term; it is not long term; it is a flash in the moment.
ย โThey did not refer to any law that authorises them to do what they are doing.
โSo, long and short, it looks to me like the government is genuinely now and sincerely confused because they have created problems for themselves.โ
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