NNPC To Sell Petrol At Cost For 30 Days As FG Unveils Measures To Cushion Fuel Price Hike

The Nigerian National Petroleum Company (NNPC) Limited has agreed to forgo its petrol retail profit margin and sell fuel at cost for 30 days as part of Federal Government measures to ease the impact of rising petrol prices on Nigerian households.

The Presidency announced the development in a statement issued by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, on Thursday, October 8, 2026.

According to the statement, the initiative, backed by President Tinubu, is aimed at cushioning the effects of rising global crude oil prices and volatility on vulnerable Nigerians, particularly commercial transport operators and households affected by increasing transportation costs.

Under the arrangement, NNPC Retail will sell petrol at the same price it incurs in landing the product. For instance, if its landing cost is ₦1,300 per litre, it will sell at that price without adding its retail profit margin.

The Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, who announced the measure, expressed hope that other fuel marketers would adopt a similar approach, noting that the surge in crude oil and petrol prices was not expected to last indefinitely.

Oyedele, however, clarified that the initiative should not be interpreted as a return to fuel subsidy, which the Tinubu administration removed on May 29, 2023.

The minister also disclosed that the Federal Government was negotiating a ceiling of ₦1,350 per litre on petrol’s ex-gantry or landing cost as part of efforts to moderate price fluctuations.

Under the proposed arrangement, refiners and importers would absorb costs exceeding the ceiling and recover the difference later when crude oil prices or exchange rates become more favourable.

“This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppressing them,” Oyedele said.

He explained that the proposed ceiling would be reviewed monthly, with figures published to promote transparency.

The government also plans to introduce forward crude oil sales to domestic refineries, allowing them to secure supplies and helping shield local petrol prices from fluctuations in the international market.

Other measures include increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and efforts to curb the collection of unauthorised road taxes and levies that contribute to higher transportation and logistics costs.

The Federal Government further announced plans to accelerate the rollout of Compressed Natural Gas (CNG) in collaboration with state governments.

According to the statement, CNG is between 60 and 70 percent cheaper than petrol, with the government expecting transport operators to pass the savings on to passengers through reduced fares.

The administration is also considering an excess-profit tax on operators found to be taking undue advantage of consumers across the energy value chain.

Proceeds from such taxes, if introduced, would be dedicated to transport support or vouchers for urban minimum-wage earners, while the government would work with the National Assembly on possible additional tax relief for low-income earners under the 2027 Finance Bill.

As part of its longer-term strategy, the government said it was investing in a National Strategic Fuel Reserve to protect households and businesses against future energy disruptions.

The reserve would allow refined petroleum products to be released into the market under published guidelines whenever global supply disruptions or hoarding threaten availability and price stability.

The government also plans to reduce regulatory costs affecting businesses and improve traffic and logistics management in major cities to lower fuel consumption and transportation expenses.

It said the newly introduced address codes by the Nigerian Postal Service (NIPOST) would also help improve logistics efficiency and reduce delivery costs.

The Presidency acknowledged the pressure high fuel prices have placed on Nigerians but maintained that restoring a blanket fuel subsidy would expose the country to the economic challenges associated with the previous subsidy regime.

“Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity,” the statement said, adding that the administration was committed to ensuring that the gains of its reforms reached more Nigerians.

The Federal Government also disclosed that it was working on a comprehensive package of fiscal measures aimed at sustainably reducing inflation to single digits in the near term.