NNPC to Sell Petrol at Cost Price, Presidency Confirms
The Nigerian National Petroleum Company Limited will forgo its profit margin on petrol sales for 30 days to cushion the impact of global price shocks on vulnerable households, with presidential backing.
The Nigerian National Petroleum Company Limited will forgo its profit margin on petrol sales for 30 days to cushion the impact of global price shocks on vulnerable households, with presidential backing.
· Updated
The Nigerian National Petroleum Company Limited (NNPCL) will sell petrol to Nigerians at its landing cost, forgoing its retail profit margin for 30 days. This measure, approved by President Bola Tinubu, aims to mitigate the effects of global crude oil price volatility on vulnerable households.
The Presidency clarified that this initiative does not signify a return to blanket fuel subsidies, which were removed to foster long-term economic prosperity. Instead, it is designed to ensure the benefits of reforms reach more Nigerians directly and tangibly.
NNPCL Retail, which already offers the lowest petrol prices, will implement this at-cost pricing within the next 30 days. If the landing cost is N1300, the company will sell at that price, particularly to commercial vehicles.
This discount gesture is part of broader fiscal measures announced by the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele. These measures include negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to stabilize pump prices.
Other initiatives include forward sales of crude to domestic refineries to shield pump prices from market volatility, increased funding for cash transfers to vulnerable households, subsidized credit for small businesses, and a faster rollout of Compressed Natural Gas (CNG) vehicles.
FAQ
What is the NNPC's new petrol pricing measure?
The NNPC will sell petrol at its landing cost, without adding its profit margin, for a period of 30 days.
Does this mean fuel subsidies are returning?
No, the Presidency has stated that this measure is not a restoration of blanket fuel subsidies but a targeted effort to ease price shocks.
