Oyedele disclosed this in a statement shared on his X platform on Friday, saying the discount was funded entirely from NNPC Retail’s profit margin and did not involve public funds.

Motorists have been paying less for petrol at NNPC Retail filling stations since October 1, 2026, following the company’s decision to reduce its retail margin. The minister welcomed the relief the initiative offers households, commuters and transporters but said it should not be confused with the fuel subsidy regime abolished by the Federal Government in 2023.

He explained that a margin discount occurs when a retailer reduces or temporarily forgoes part or all of its profit margin to lower prices for customers, while a subsidy involves the government paying part of the cost of a product using public revenue.

“The cost of the discount is borne by the retailer alone,” he said, adding that the discounted pump price remained market-reflective. Oyedele distinguished the arrangement from selling crude oil owned by the Federation below market prices, which he said would amount to a subsidy because the shortfall would be borne by public revenue.