FG Offers 30-Day Petrol Discount at NNPC Stations, Targets N1,350 Landing Cost Ceiling

The Federal Government has announced a 30-day discount on petrol sold through the Nigerian National Petroleum Company Limited, with public transport operators first in line. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday, October 8, 2026, at a press briefing in Abuja on fuel prices and subsidy-related matters.

Oyedele said the discount should not be seen as a return to fuel subsidy. He said: “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. So, it’s not a subsidy, government is just saying we sell to you at cost.”

N1,350 Ceiling on Landing Cost

Beyond the discount, the government is negotiating a ceiling of N1,350 per litre on the ex-gantry, or landing, cost of petrol. Oyedele clarified that this is not the expected pump price. It is a cap on the product’s cost before other costs are added.

The ceiling is designed to protect consumers from sharp swings in global crude oil prices and naira exchange rate movements. Oyedele said: “Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable.”

He added that the ceiling would be reviewed monthly. The figures would be published openly to ensure transparency. If petrol costs rise above the ceiling, refiners and importers would absorb the difference upfront and recover it later when market conditions ease.

Not Subsidy, Not Price Control

Oyedele described the arrangement as neither a subsidy nor price control. He called it a tool for managing price volatility over time. He explained: “The reasoning is simple, N1,400 a litre today and N1,400 a litre tomorrow is better than N1,500 a litre today and N1,300 a litre tomorrow.”

The government decided to act because existing interventions had not done enough to shield households and businesses from the ripple effects of high fuel and transport costs. Oyedele noted that sharp fuel price increases push up costs across the economy, while price reductions often move much more slowly. The measures are meant to offer near-term relief to petrol consumers while the government pursues broader stability in the downstream petroleum sector.

Recent NNPC Price Movements

The announcement follows an earlier N5 per litre reduction by the Nigerian National Petroleum Company Limited at its retail outlets in Lagos. The price dropped from N1,360 to N1,355. Motorists in Lagos and Rivers now pay N1,355 per litre, the cheapest locations on NNPC’s updated price list. Abuja buyers pay N1,370 per litre. Yobe has the highest petrol price at N1,435 per litre, followed by Niger State at N1,433.

What It Means

For commuters and small businesses, the 30-day discount could soften transport costs in the short term. The proposed landing cost ceiling, if implemented, could give marketers and consumers a clearer idea of how much of pump price movement comes from exchange rate and crude oil swings. That matters for pricing, planning and the naira’s pass-through effect on fuel.