NNPC Extends N66 Petrol Discount to October 31, Denies Subsidy Return

The Nigerian National Petroleum Company Limited (NNPC Limited) has extended its N66-per-litre petrol discount until October 31, 2026, as the Federal Government steps up efforts to ease the impact of rising fuel prices on Nigerians.

The company announced the extension on Friday, confirming that the discount, introduced on October 1 to commemorate Nigeria’s 66th Independence Anniversary, would continue throughout the month at NNPC Retail stations nationwide.

The decision followed the Federal Government’s Thursday announcement of a 30-day petrol discount initiative aimed at cushioning the effects of elevated global crude oil prices on households, businesses, and the wider economy.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the government’s intervention during a press briefing in Abuja, saying NNPC would forgo its retail profit margin on petrol sold at its filling stations.

“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance, with priority for public transporters nationwide,” Oyedele said.

He explained that the arrangement was intended to relieve Nigerians without returning to the former petrol subsidy system. However, the minister did not initially disclose the exact discount amount or the pump price customers would pay under the initiative.

In a statement issued on Friday, NNPC’s Chief Corporate Communications Officer, Andy Odeh, said the company had already introduced the N66 discount on October 1 and would now sustain it until October 31 across its retail outlets.

The company stressed that the extension should not be interpreted as a restoration of the petrol subsidy regime, which the Federal Government removed in May 2023.

“This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy,” NNPC stated.

The company added that the measure applied exclusively to NNPC Retail outlets and did not establish a uniform national pump price or change the market-based pricing framework governing petroleum products.

NNPC said the initiative was intended to provide practical relief to customers facing higher transportation and business operating costs amid uncertainty in global energy markets. It reiterated its commitment to working with the government and other stakeholders to limit the impact of rising fuel prices on Nigerian households and businesses.

Beyond the discount, Oyedele disclosed that the Federal Government was negotiating a ceiling of N1,350 per litre on petrol’s ex-gantry or landing cost as part of efforts to moderate fluctuations in pump prices.

According to the minister, the proposed arrangement would involve refiners and importers absorbing temporary increases in petrol costs and recovering the difference when market conditions improve. The mechanism, which he described as price modulation, is intended to reduce the extent to which consumers are exposed to sudden changes in international crude oil prices and foreign exchange rates.

Oyedele said the proposed ceiling would be subject to periodic review, adding that the objective was to provide greater stability in petrol prices rather than introduce a subsidy or impose price controls.

The government’s latest measures come as international crude oil price movements, partly linked to the conflict in the Middle East, continue to influence domestic petrol costs. Other factors, including exchange-rate movements, refining and distribution expenses, and competition among suppliers, also affect pump prices across the country.

Since the removal of the petrol subsidy in May 2023, consumers have faced greater exposure to changes in global energy markets. The policy reduced the Federal Government’s direct expenditure on keeping petrol prices artificially low but contributed to increased transportation costs and pressure on the prices of goods and services.

The decision to prioritise public transport operators under the discount scheme is expected to help ease some of these pressures. Commercial drivers and other transport providers often pass increases in fuel costs to passengers through higher fares, making transportation a significant channel through which petrol price changes affect household spending.

However, details of how public transport operators would be identified and given priority under the initiative have not been fully disclosed. It also remains unclear whether the proposed landing-cost ceiling will be implemented and how the arrangement will operate in practice.

NNPC maintained that it would continue to ensure reliable petroleum product supplies while conducting its operations on a commercially responsible basis.

The company urged Nigerians to disregard suggestions that the discount extension amounted to a return to the former subsidy regime, reiterating that the measure was a limited customer-support initiative. It also assured the public that it would continue to communicate clearly about the scope and duration of its pricing initiatives.