NNPC to sell petrol at landing cost for 30 days amid global oil shock
NNPC to sell petrol at landing cost for 30 days to ease fuel price shock
The Federal Government announced Thursday that the Nigerian National Petroleum Company Limited (NNPC) will forgo its retail profit margin and sell petrol at landing cost for the next 30 days. If NNPC’s landing cost is N1,300 per litre, it will sell at that price, aiming to cushion the impact of global oil price shocks on consumers, especially vulnerable households. The move, backed by President Bola Tinubu, follows earlier statements by Finance Minister Taiwo Oyedele, who is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost to limit price volatility amid Brent crude rising above $100 per barrel due to Middle East conflicts.
This temporary discount offers immediate relief at the pump for drivers and businesses grappling with high transportation costs after the 2023 petrol subsidy removal. While the Presidency insists it is not a subsidy restoration but a short‑term intervention to moderate volatility, the measure has sparked debate over whether it amounts to a disguised subsidy and could be used for political gain ahead of the 2027 elections. NNPC Retail, already said to sell at the lowest market price, is expected to provide short‑term relief while other marketers are encouraged to follow suit.
Beyond the 30‑day price hold, the government outlined additional steps: accelerating compressed natural gas (CNG) rollout (60‑70% cheaper than petrol), selling crude oil to domestic refineries via forward‑sale agreements to shield pump prices, considering an excess profit tax on price gougers, and pushing tax reforms to reduce road taxes and levies that inflate transport costs. The discount starts immediately and lasts 30 days; consumers can check NNPC outlets for the N1,300/litre price. Will you benefit from lower pump prices, or turn to alternatives like CNG if available in your area?