FULL LIST: FG unveils 10 measures to cushion impact of rising petrol prices

The Federal Government has outlined 10 measures to alleviate the impact of rising petrol prices and safeguard households, businesses, and transport users in Nigeria. The government emphasized that these measures aimed to mitigate immediate hardships caused by higher fuel prices without reinstating the blanket fuel subsidy.

1. A 30-day petrol discount at NNPC stations will be offered to public transporters across the country, with priority given to them. This measure is not a return to subsidy as the government will sell petrol at cost under the arrangement.

2. Forward sales of crude oil to local refineries will be increased as production rises, helping to shield domestic petrol prices from international market fluctuations.

3. The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol. Refiners and importers would absorb any shortfall when costs exceed the ceiling and recover the difference later, without breaching the ceiling.

4. The Federal Government plans to work with states to remove illegal road taxes and levies that increase the cost of transporting goods and services under 2025 tax reform laws.

5. Cash transfers will be increased for vulnerable households, and subsidised credit will be provided to small businesses and consumers to cushion the effects of higher fuel prices.

6. The deployment of compressed natural gas vehicles across the country will be accelerated to reduce fuel consumption and cut logistics costs.

7. An excess profit tax for operators exploiting the situation anywhere along the energy value chain will be considered, with proceeds used to support the impact of fuel prices through transport support and vouchers for urban minimum wage earners.

8. Unnecessary regulatory requirements and costs that contribute to the expenses of businesses and drive up the prices of goods and services will be reduced.

9. A National Strategic Fuel Reserve will be established to improve supply security and reduce the impact of global disruptions by releasing refined products into the market under clear, published rules whenever necessary.

10. Better traffic and logistics management in urban areas will be implemented to reduce fuel consumption and lower logistics costs. NIPOST address codes will be used to make logistics operations more efficient and affordable.