In a fresh measure aimed at reducing the impact of rising fuel and transportation costs on Nigerians, the federal government Thursday announced a 30-day discount on petrol dispensed through the Nigerian National Petroleum Company Limited (NNPCL).
The federal government said the measure is part of a broader response to the pressure being experienced by Nigerians as a result of increased petrol and transportation costs.
It added that these interventions are intended to cushion the effect of high energy and transportation costs while creating greater stability in the downstream petroleum market.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing in Abuja on fuel prices and measures being taken by the Federal Government to ease economic pressure on households and businesses.
He explained that the discount would run for an initial period of 30 days, with public transport operators given priority nationwide.
Oyedele added that the arrangement should not be interpreted as a return to the former petrol subsidy regime.
According to him, Rather, the government intends to make petrol available through NNPC at cost during the period of the intervention.
The minister noted that as part of the wider measures, the federal government was also negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.
Oyedele noted that the proposed ceiling was designed to reduce the impact of sudden changes in international crude oil prices and foreign exchange movements on domestic petrol prices.
The Minister clarified that the proposed ₦1,350 figure does not mean petrol would automatically sell for ₦1,350 per litre at filling stations.
He added: “Instead, it is intended to provide greater stability by preventing pump prices from immediately following every fluctuation in global crude prices and exchange rates.
“The proposed ceiling is expected to be reviewed monthly, with adjustments published for transparency.
“With public transporters given priority under the 30-day discount arrangement, the policy is expected to focus particularly on transportation costs, which have a direct impact on the daily movement of workers, traders, students and other Nigerians.
“The federal government is also working on other measures, including forward crude sales to domestic refiners, increased support for vulnerable households and measures aimed at supporting small businesses and consumers.”