NNPCL fuel discount: Oyedele makes five clarifications on N1,350/litre petrol price

Honourable Minister of Finance Taiwo Oyedele has clarified five key points regarding the recent fuel price discount at Nigerian National Petroleum Company Limited (NNPCL) filling stations. Oyedele, speaking personally in a statement, emphasized that the discounted petrol price of N1,350 per litre does not equate to a return of fuel subsidies.

The discount does not utilize public funds, and the government ended its fuel subsidy regime in 2023, making its return impossible. Oyedele explained that the discount is a margin reduction chosen by the retailer, not a government-funded subsidy. NNPL Retail, the company behind the discount, aims to keep fuel affordable and available nationwide, a role it has historically performed by selling fuel below market prices.

The current discount does not necessarily lower profits for NNPCL or reduce Federation dividends, as the margin is typically less than 5% of the pump price. Furthermore, the discount is unlikely to distort the market or encourage smuggling since it does not significantly alter the price gap between Nigeria and neighboring countries.

Minister Oyedele also highlighted that the discount is part of a broader strategy to ease the financial burden on households and businesses, alongside other measures such as expanding CNG transport, waiving taxes and duties on petrol, and removing illegal levies.