The Federal Government has unveiled 10 measures to cushion Nigerians against rising petrol prices, including a 30-day discount on petrol sold at Nigerian National Petroleum Company Limited (NNPC) stations, increased cash transfers to vulnerable households and a proposed N1,350-per-litre ceiling on petrol landing costs.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measures on Thursday during a press briefing on fuel prices and the subsidy question in Abuja.
Other interventions include increased crude oil supplies to domestic refineries, the removal of illegal road levies, accelerated deployment of compressed natural gas (CNG) vehicles, a proposed excess profit tax and the establishment of a National Strategic Fuel Reserve.
According to the government, the programme is designed to reduce the immediate impact of rising fuel prices on households, transport operators and businesses without restoring a blanket petrol subsidy.
Here are the 10 measures announced by the Federal Government:
1. 30-day petrol discount at NNPC stations
The government will offer a discount on petrol dispensed by NNPC Limited for 30 days, with priority given to public transport operators nationwide.
Oyedele said the arrangement would effectively allow petrol to be sold at cost during the period, stressing that it would not amount to a return to the former subsidy regime.
The measure is intended to provide temporary relief to transport operators and help limit the pressure of higher petrol prices on commuters.
2. Increased crude oil supplies to local refineries
The Federal Government plans to increase forward sales of crude oil to domestic refineries as production rises.
Oyedele said the arrangement would free up committed crude supplies and help shield local petrol prices from fluctuations in the international market.
The government expects improved access to crude oil to support domestic refining and reduce exposure to external price shocks.
3. Proposed N1,350-per-litre landing-cost ceiling
The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.
Under the proposed arrangement, refiners and importers would absorb any shortfall when costs rise above the ceiling and recover the difference when crude oil prices or exchange rates become more favourable.
Oyedele said the arrangement would be reviewed monthly, with adjustments made where necessary and figures published for transparency.
He argued that smoothing price movements over time would provide greater certainty for households and businesses, particularly because transport fares tend to rise quickly when fuel prices increase but often fall more slowly.
The minister maintained that the proposal was intended to moderate price volatility rather than introduce a subsidy or impose direct price control.
4. Removal of illegal road levies
The Federal Government will work with state governments to eliminate illegal road taxes and levies that increase the cost of transporting goods and services.
Oyedele said the initiative would be pursued under the 2025 tax reform laws.
Reducing such charges is expected to ease logistics expenses and limit the extent to which additional transportation costs are passed on to consumers through higher prices.
5. Increased support for vulnerable households and businesses
The government plans to increase cash transfers to vulnerable households to help them cope with the rising cost of fuel.
It will also provide subsidised credit to small businesses and consumers as part of efforts to protect livelihoods and economic activity.
The measures are intended to direct assistance towards those most affected by higher energy and transportation costs rather than provide a blanket subsidy for all petrol consumers.
6. Accelerated rollout of CNG vehicles
The government will accelerate the deployment of compressed natural gas vehicles across the country, with support from federal and state governments.
Transport operators will also be encouraged to pass on savings from using CNG to passengers through lower transportation costs.
The initiative is expected to promote the use of alternative fuels and reduce the exposure of public transportation to petrol price increases.
7. Excess profit tax and additional tax relief
The Federal Government will consider an excess profit tax on operators found to be taking undue advantage of the situation anywhere along the energy value chain.
Oyedele said proceeds from the proposed tax would be used exclusively to cushion the impact of fuel prices through transport support or vouchers for urban minimum-wage earners, whom he identified as particularly vulnerable.
The government also plans to work with the National Assembly to introduce enhanced tax relief for low-income earners through the 2027 Finance Bill.
8. Reduction of regulatory costs
The government intends to remove unnecessary regulatory requirements and reduce costs that increase the operating expenses of businesses.
According to Oyedele, such expenses can contribute to higher prices for goods and services, adding to the financial pressure on households already affected by rising petrol prices.
The intervention is aimed at reducing avoidable business costs and improving the efficiency of economic activities.
9. Establishment of a National Strategic Fuel Reserve
The Federal Government plans to establish a National Strategic Fuel Reserve to strengthen supply security and reduce the impact of global disruptions on the domestic market.
Oyedele said refined petroleum products would be released under clear, published rules whenever international disruptions or hoarding threatened supply and price stability.
He said the reserve would help prevent artificial scarcity, discourage market manipulation and strengthen long-term energy security without fixing prices or reinstating a subsidy.
10. Improved traffic management and logistics
The government will improve traffic management in urban areas to reduce fuel consumption and lower logistics costs.
It also plans to use NIPOST address codes to make logistics operations more efficient and affordable.
The measures are intended to reduce avoidable delays, improve the movement of goods and services and lower costs associated with transportation and distribution.
FG rules out blanket fuel subsidy
The announcement comes amid rising petrol prices following increases in international crude oil and refined petroleum product prices.
Oyedele said the government had opted for targeted interventions to protect vulnerable Nigerians and businesses instead of returning to a blanket fuel subsidy.
He argued that restoring a general subsidy would create longer-term economic problems in an attempt to provide short-term relief.
The proposed landing-cost ceiling, excess profit tax and National Strategic Fuel Reserve remain subject to the arrangements outlined by the government, while several other interventions will require coordination with state governments, transport operators or the National Assembly.
The effectiveness of the programme will depend on its implementation, the extent to which the measures translate into lower transport and business costs, and whether the intended beneficiaries receive the promised support.
