The Nigerian National Petroleum Company (NNPC) Limited has agreed to forgo its petrol retail profit margin and sell petrol at cost for 30 days as part of Federal Government measures to cushion the impact of rising global crude oil prices on Nigerian households.

The decision was announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, as the Federal Government unveiled additional measures to ease the burden of rising fuel prices on Nigerians, particularly low-income earners and commercial transport operators.

According to a State House press release issued on Thursday, October 8, 2026, the initiative has the backing of President Bola Ahmed Tinubu and is intended to provide temporary relief amid volatility in the global oil market.

Under the arrangement, NNPC Retail will sell petrol at its landing cost without adding a retail profit margin. For instance, if the company’s landing cost is N1,300 per litre, it will sell the product at the same price.

The government said the initiative would particularly benefit commercial vehicles and other transport operators, while expressing hope that other fuel marketers would adopt similar measures.

Oyedele, however, cautioned against interpreting the initiative as a return to petrol subsidy, insisting that the policy would not reverse the removal of the subsidy on May 29, 2023.

FG considers N1,350 petrol cost ceiling

As part of efforts to moderate pump prices, the Federal Government is negotiating a ceiling of N1,350 per litre on petrol’s ex-gantry or landing cost.

Under the proposed arrangement, refiners and importers would absorb costs exceeding the ceiling and recover the shortfall later when crude oil prices or exchange-rate conditions become more favourable.

The minister said the arrangement was designed to smooth out price fluctuations rather than impose price controls or restore subsidies.

He explained that maintaining relatively stable prices over time would provide greater certainty for households and businesses than allowing sharp increases followed by sudden reductions.

According to Oyedele, the proposed ceiling would be reviewed monthly, with adjustments made in line with prevailing costs. The government also pledged to publish the relevant figures to ensure transparency.

FG plans crude oil forward sales to local refineries

The government is also introducing forward sales of crude oil to domestic refineries as part of efforts to shield the local market from global price volatility.

The measure is expected to become more effective as crude oil production increases and previously committed volumes become available for domestic use.

The Federal Government believes that improved access to crude oil supplies would help local refineries plan their operations and reduce the transmission of international market shocks to domestic petrol prices.

Cash transfers, CNG rollout to support households

Other measures announced by the government include increased funding for cash transfers to vulnerable households and subsidised credit for small businesses and consumers.

The government is also accelerating the rollout of compressed natural gas (CNG) in collaboration with state governments.

According to the statement, CNG is between 60 and 70 per cent cheaper than petrol, with transport operators expected to pass the savings on to passengers through lower fares.

In addition, the Federal Government plans to work with states and security agencies to curb the collection of road taxes and levies that contribute to higher transport fares and logistics costs.

The administration also intends to consider an excess-profit tax on operators found to be taking undue advantage of consumers across the energy value chain.

Proceeds from any such tax, the government said, would be used exclusively to cushion the impact of rising fuel prices through transport support or vouchers for urban minimum-wage earners.

The Federal Government will also work with the National Assembly to consider additional tax relief for low-income earners under the 2027 Finance Bill.

FG to establish strategic fuel reserve

To strengthen the country’s preparedness for future energy disruptions, the government announced plans to invest in a National Strategic Fuel Reserve.

Under the proposed framework, refined petroleum products would be released into the market under clear and publicly available rules whenever global supply disruptions or hoarding threaten availability and price stability.

The government said the reserve would help prevent artificial scarcity, discourage market manipulation and reduce price volatility without fixing prices or reintroducing fuel subsidies.

Other planned interventions include reducing regulatory costs that contribute to higher business expenses, improving traffic management in major urban centres to reduce fuel consumption, and using NIPOST’s newly launched address codes to improve logistics efficiency.

Presidency defends fuel subsidy removal

The Presidency acknowledged the hardship Nigerians are experiencing because of high fuel prices but maintained that restoring a blanket petrol subsidy would create greater economic difficulties in the long run.

In the statement, the government argued that previous subsidy arrangements had contributed to fuel scarcity, smuggling, currency pressures and fiscal challenges.

It maintained that the current interventions were intended to ensure that the benefits of economic reforms reach more Nigerians without reversing the removal of the subsidy.

The Presidency also disclosed that the Federal Government was working on a comprehensive package of fiscal measures aimed at sustainably reducing inflation to single digits in the near term.

The latest interventions come amid concerns over the impact of rising global crude oil prices and petrol costs on household spending, transportation and the cost of goods and services.

While the government maintains that the measures will provide targeted relief without distorting the deregulated petroleum market, their impact will depend on implementation, compliance by market operators and the extent to which lower costs are passed on to consumers.

The statement was signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, and dated October 8, 2026.