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From Adanna Nnamani, Abuja
The Nigerian National Petroleum Company (NNPC) Limited, has clarified that its petrol discount initiative is not a restoration of the defunct petroleum subsidy, but a temporary measure aimed at cushioning the impact of rising fuel prices on Nigerians.
The company said the initiative, introduced on October 1 to commemorate Nigeria’s 66th Independence Anniversary, would run until October 31, 2026, across its retail outlets nationwide.
According to NNPC, the discount was introduced in response to rising global crude oil prices triggered by the conflict in the Middle East and their impact on domestic petrol prices.
In a statement issued on Thursday, the company’s Chief Corporate Communications Officer, Andy Odeh, reaffirmed its commitment to supporting the Federal Government’s efforts to ease the burden of rising fuel costs on households, businesses and the wider economy.
Odeh stressed that the initiative was strictly a customer relief measure and should not be interpreted as a reintroduction of the petroleum subsidy removed by the Federal Government in May 2023.
“NNPC Limited reaffirms its commitment to supporting the Federal Government’s efforts to provide relief for Nigerians amid elevated global crude oil prices arising from the Middle East conflict and the resulting impact on domestic petrol prices,” the statement said.
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The company acknowledged that rising petrol prices had increased transportation costs and the cost of doing business, putting additional pressure on households, livelihoods and economic activities.
It explained that the discount was designed to provide direct relief to customers during a period of heightened uncertainty in the global oil market.
However, NNPC emphasised that the initiative applied only to its retail outlets and did not establish a uniform national pump price or alter the market-based pricing framework governing petroleum products.
The clarification followed an announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on October 8, that NNPC Retail would waive its petrol retail profit margin and sell the product at cost for 30 days to cushion the effects of rising prices.
Oyedele also disclosed that the Federal Government was negotiating a ceiling of N1, 350 per litre on petrol landing costs as part of efforts to moderate price volatility.
The government maintained that the proposed measures were not a return to petroleum subsidy but targeted interventions intended to provide relief to consumers while preserving the market-based pricing system.
