The Federal Government has announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators across the country to receive priority under the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure on Thursday, October 8, 2026, during a press briefing in Abuja on petrol prices and issues surrounding fuel subsidy.
Oyedele explained that the initiative was not a return to the petrol subsidy regime, stressing that the government’s plan was to make petrol available at cost through NNPCL during the initial 30-day period.
He said the discount was introduced as part of measures to ease the pressure created by rising petrol and transportation costs on Nigerians.
“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,” the minister said.
The announcement comes amid growing concerns over the rising cost of living, particularly the impact of petrol prices on transportation, food prices and household expenses.
The Nigeria Labour Congress (NLC) had recently demanded an immediate reduction in petrol prices, a nationwide wage award for workers and the commencement of negotiations for a new national minimum wage.
In an Independence Day statement issued by its President, Joe Ajaero, on September 30, 2026, the NLC warned that Nigerians were facing what it described as a worsening survival crisis.
The union said persistent inflation had eroded workers’ purchasing power, while rising petrol and transportation costs had contributed to increases in the prices of food, school fees, rent and other essential goods and services.
The NLC had also questioned the utilisation of funds saved from the removal of petrol subsidy in May 2023, arguing that Nigerians were yet to see the infrastructure and social benefits promised as part of the reform.
The latest Federal Government intervention, however, comes against the backdrop of President Bola Tinubu’s continued defence of the subsidy removal and rejection of calls for a return to the former subsidy regime.
Beyond the 30-day discount, Oyedele disclosed a broader package of measures aimed at reducing fuel-price volatility and easing pressure on households and businesses.
One of the measures involves negotiations for a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.
According to the minister, the proposed price-modulation mechanism is intended to shield domestic petrol prices from immediate and sharp fluctuations in international crude oil prices and foreign-exchange rates.
Under the proposed arrangement, where the actual cost rises above the agreed ceiling, refiners and importers would bear the shortfall and recover it when market conditions become more favourable.
Oyedele said the mechanism was neither a subsidy nor conventional price control, but rather an attempt to smooth out sharp movements in fuel prices.
He explained that the objective was to prevent a situation where petrol prices rise sharply whenever international crude prices or exchange rates move adversely.
The proposed ceiling would be reviewed monthly, with relevant figures and calculations expected to be published for transparency.
The Federal Government is also working on forward crude sales to domestic refineries. Oyedele said the arrangement would provide refiners with greater certainty over crude supplies and help protect domestic fuel prices from sudden movements in international crude prices.
Under the proposal, crude could be sold to domestic refiners at predetermined prices for specified periods, enabling them to plan production and potentially provide greater stability for consumers.
Another component of the government’s intervention is an acceleration of the deployment of Compressed Natural Gas (CNG) vehicles and infrastructure as cheaper alternatives to petrol-powered transportation.
Oyedele said more than 120,000 vehicles were already operating on CNG, supported by more than 400 conversion centres, 96 refuelling stations and 18 unified CNG stations.
He added that the government had deployed hundreds of CNG buses, with commuters in areas where the buses operate benefiting from fare reductions of between 30 and 50 per cent.
The Federal Government, he said, had also removed taxes on electric vehicles and solar equipment while reducing import duties on vehicles in an effort to encourage the adoption of cheaper and cleaner energy alternatives.
The minister said the broader intervention package was designed to provide immediate relief while implementing structural measures aimed at reducing Nigeria’s exposure to energy-price shocks, lowering transportation costs and strengthening domestic energy security.
He further disclosed that the government was working with state governments under the new tax laws to rein in taxes and levies that contribute to higher fuel and logistics costs.
The government is also increasing funding for cash transfers to vulnerable households and subsidising credit for small businesses and consumers.
According to Oyedele, efforts are equally being made with state governments to accelerate the rollout of CNG as an alternative energy source.
He stressed that the measures should not be interpreted as a restoration of the blanket petrol subsidy, which the Federal Government maintains would create longer-term fiscal challenges.
The latest intervention is expected to provide temporary relief to public transport operators and commuters while the government pursues measures aimed at achieving greater stability in petrol prices and reducing the impact of fuel costs on the wider economy.
