NNPC Suspends Margin for 30 Days to Ease Fuel Costs

The Nigerian National Petroleum Company Limited (NNPC) has announced a temporary suspension of its margin for 30 days, allowing petrol to be sold at cost to provide relief to Nigerians facing rising fuel and transport costs. This decision was disclosed by a presidential spokesperson on Thursday.

The measure is part of a broader response to global oil price shocks affecting households and businesses. If NNPC's landing cost is ₦1,300 per litre, retail outlets will sell at that price, particularly for commercial vehicles.

However, this figure is illustrative and not a confirmed nationwide pump price. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, mentioned that the government is negotiating a ₦1,350-per-litre ceiling on petrol's ex-gantry cost, which should not be confused with a nationwide pump price.

The ceiling will be reviewed monthly to enhance transparency. The government clarified that this temporary margin waiver does not reinstate the petrol subsidy removed on May 29, 2023, and warned against returning prices to pre-reform levels.