NNPC to Sell Petrol at Cost for 30 Days Amid Price Hikes

The Nigerian National Petroleum Company (NNPC) Limited has agreed to sell petrol at cost for the next 30 days, suspending its retail profit margin to help vulnerable households cope with the impact of global crude oil price shocks. This decision was disclosed by Bayo Onanuga, the presidential spokesperson, in a statement.

The arrangement, which will be implemented by NNPC Retail, aims to sell petrol at the same price as its landing cost, which could be N1,300 per litre, particularly benefiting commercial vehicle operators. This initiative is part of a broader package announced by the Minister of Finance, Taiwo Oyedele, and has the backing of President Bola Tinubu.

Oyedele expressed hope that other petroleum marketers would follow suit. The government is also negotiating a ceiling of N1,350 per litre on the ex-gantry cost of petrol to stabilize prices, with refiners and importers absorbing any shortfall beyond this limit.

Onanuga emphasized that this measure should not be seen as a return to the fuel subsidy regime, which was removed on May 29, 2023.