Oyedele Clarifies NNPC's 30-Day Petrol Discount Funding

Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, announced that the 30-day petrol discount introduced by the Nigerian National Petroleum Company Limited (NNPC) Retail is not a return to fuel subsidy. At a press conference, he explained that the discount allows Nigerians to purchase petrol at lower prices at NNPC filling stations and is entirely funded from NNPC Retail’s profit margin, without involving public funds.

Oyedele clarified that this discount should not be confused with the fuel subsidy regime abolished by the Federal Government in 2023. He detailed that NNPC Retail buys petrol from the Dangote Refinery and other suppliers at market prices and sets pump prices by adding its retail margin.

The minister emphasized that the cost of the discount is solely borne by the retailer and that the discounted prices remain market-reflective. He defended NNPC Retail’s decision to reduce its margin as consistent with its mandate to ensure the availability and affordability of refined petroleum products.