NNPC Suspends Petrol Retail Margin for 30 Days, FG Eyes ₦1,350 Landing Cost Ceiling

The Nigerian National Petroleum Company Limited (NNPC) will suspend its petrol retail margin for 30 days and sell at cost, Presidential spokesperson Bayo Onanuga said on Thursday. The move, backed by President Bola Tinubu, is temporary relief and not a nationwide price cut or a return to blanket fuel subsidies.

Onanuga said NNPC Retail would sell petrol at cost during the intervention. If NNPC's landing cost was ₦1,300 per litre, its outlets would sell at that same price, particularly to commercial vehicles. The ₦1,300 figure was an illustration, not an announcement of a uniform nationwide pump price. Actual prices will depend on the applicable cost. The statement did not establish that every petrol marketer had agreed to reduce prices. The government expressed hope that other operators would follow NNPC's example while international energy markets stabilise.

FG negotiates ₦1,350 landing cost ceiling

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government is negotiating a ₦1,350-per-litre ceiling on petrol's ex-gantry or landing cost. The proposal concerns costs before retail sales. Under the framework, refiners and importers would initially absorb costs above the ceiling, then recover the difference when crude prices or exchange rates improve. Oyedele said the arrangement would smooth price movements and give consumers and businesses greater certainty. The ceiling would be reviewed monthly, with relevant figures published to improve transparency.

No return to blanket subsidy

The Presidency maintained that NNPC's temporary margin waiver would not restore the blanket petrol subsidy removed on May 29, 2023. Oyedele rejected calls to return petrol prices to pre-reform levels. He warned that doing so could cost more than ₦20 trillion annually. He argued that renewed subsidy spending could worsen pressure on the naira and ultimately push fuel prices higher.

The distinction is that NNPC would forgo its retail margin temporarily, while the proposed ceiling would spread cost pressures across different periods. Neither announcement guarantees an immediate or permanent reduction at every filling station.

Relief measures and supply plans

The interventions follow increases in international crude and refined-product prices linked to the conflict involving the United States, Israel and Iran. Disruptions around the Strait of Hormuz intensified supply concerns, with Brent crude rising above $100 per barrel. For Nigeria, higher oil prices can strengthen export earnings while increasing fuel, transport and production costs.

The government plans to accelerate compressed natural gas deployment with state governments. It says CNG is between 60% and 70% cheaper than petrol and expects transport operators using the cheaper fuel to pass savings to passengers. Other measures include expanded cash transfers for vulnerable households, subsidised credit for small businesses and consumers, and action against road taxes and levies that inflate logistics costs. The government would also consider an excess profit tax on operators taking undue advantage of consumers, with proceeds supporting relief measures.

To strengthen supply security, the government proposed forward crude sales to domestic refineries and a National Strategic Fuel Reserve. The reserve would release refined products under published rules when disruptions or hoarding threaten availability. Officials also outlined lower regulatory costs, improved traffic management and more efficient delivery logistics.

NNPC had earlier extended a ₦66-per-litre discount on petrol, added diesel to the offer and introduced a fuel app for customers. The promotion runs until October 14, as petrol prices at NNPC outlets range from ₦1,355 per litre in Lagos and Rivers to ₦1,435 in Yobe.

What it means for Nigerians

For consumers, the 30-day margin suspension offers short-term relief at NNPC Retail outlets, but it does not set a national pump price. The proposed ₦1,350 landing cost ceiling could reduce volatility if refiners and importers accept it, while the government's opposition to blanket subsidy means market-linked pricing remains the policy direction.