NNPC Retail has committed to selling petrol at cost price in Nigeria, waiving its trading margin to ease pressure on households and transport operators, according to a government announcement of 8 October, published the following day by the presidency. The scheme is to be offered within thirty days of that announcement.
The commitment covers the state-owned company's distribution network. Finance Minister Taiwo Oyedele wants other distributors to follow suit, but their participation has not been announced as secured. Commercial vehicles are among the beneficiaries specifically targeted.
In parallel, Abuja is negotiating a ceiling of 1,350 naira per litre on the cost of petrol as it leaves depots or arrives in the country. The threshold therefore concerns refiners and importers, and does not mean that all filling stations must already sell at the same price.
The envisaged mechanism would have operators bear temporary increases above this threshold, with the possibility of recovering the difference later when crude prices or the exchange rate become more favourable. The minister plans a monthly review of the ceiling and the publication of the amounts retained.
Presenting the proposal in Abuja, reported notably by TheCable, Taiwo Oyedele defended a smoothing of costs aimed at limiting sharp fluctuations in fuel prices. He distinguishes this proposal from a return to the generalised petrol subsidy, scrapped in May 2023.
The government has also announced forward sales of crude oil to domestic refineries. It intends to accompany these measures with targeted aid for vulnerable households and low-cost financing for small businesses, according to the presidency.