10 measures FG announced to cushion rising petrol prices
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The Federal Government has announced 10 measures aimed at cushioning the impact of rising petrol prices on households, businesses and transport users across Nigeria.
The measures were announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a press briefing on fuel prices and the subsidy question in Abuja on Thursday.
According to the government, the measures are designed to provide relief to Nigerians affected by higher petrol prices without
returning to a blanket fuel subsidy.
Here are the 10 measures announced by the Federal Government:
1. 30-day petrol discount at NNPC stations
The Federal Government will provide a margin discount on petrol sold by the Nigerian National Petroleum Company Limited for the next 30 days.
Priority will be given to public transport operators across the country.
Oyedele said the arrangement would allow petrol to be sold at cost during the period and stressed that it does not amount to a return to fuel subsidy.
2. More crude oil for local refineries
The government plans to increase forward sales of crude oil to domestic refineries as crude production rises.
The move is expected to make more crude available to local refiners and reduce their exposure to fluctuations in international crude prices.
According to the government, the arrangement would help provide greater stability for domestic petrol prices.
3. N1,350 ceiling on petrol landing cost
The Federal Government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.
Under the proposed arrangement, refiners and importers would absorb the difference when costs rise above the ceiling and recover it when crude prices or the exchange rate become more favourable.
Oyedele said the arrangement was designed to smooth out price fluctuations rather than permanently control petrol prices.
The ceiling would be reviewed monthly, with the figures published for transparency.
4. Removal of illegal levies
The government will work with state governments to tackle illegal road taxes and levies that increase the cost of transporting goods and services.
The measure will be pursued under the 2025 tax reform laws.
The government believes reducing these additional costs could help lower the cost of moving goods across the country.
5. More support for vulnerable Nigerians
The Federal Government plans to increase cash transfers to vulnerable households affected by rising living costs.
It also plans to provide subsidised credit to small businesses and consumers.
The government said it would also work with the National Assembly on enhanced tax relief for low-income earners under the 2027 Finance Bill.
6. Faster rollout of CNG vehicles
The government will accelerate the deployment of compressed natural gas (CNG) vehicles across Nigeria.
Federal and state governments are expected to support the rollout, while transport operators will be encouraged to pass savings from the cheaper fuel source on to passengers.
The government sees wider CNG adoption as a way of reducing dependence on petrol and lowering transportation costs.
7. Excess profit tax for operators
The Federal Government said it would consider an excess profit tax for businesses found to be taking undue advantage of the situation along the energy value chain.
Oyedele said proceeds from the measure would be used exclusively to cushion the impact of fuel prices.
The government plans to channel the funds into transport support or vouchers for urban minimum-wage earners who are particularly vulnerable to rising costs.
8. Reduction of regulatory costs
The government will seek to reduce unnecessary regulatory requirements and costs imposed on businesses.
According to the government, these costs ultimately increase the prices of goods and services paid by consumers.
Reducing regulatory burdens is therefore expected to help businesses manage higher operating costs and limit further price increases.
9. Establishment of a National Strategic Fuel Reserve
The Federal Government plans to establish a National Strategic Fuel Reserve to strengthen the country’s fuel supply security.
Under the proposed system, refined petroleum products could be released into the market during global disruptions or periods of artificial scarcity.
The government said the reserve would not be used to fix petrol prices but would help prevent supply disruptions, market manipulation and sudden price shocks.
10. Better traffic and logistics management
The government plans to improve traffic management in urban areas to reduce fuel consumption and logistics costs.
It also intends to use NIPOST address codes to make logistics operations more efficient and cheaper.
The government believes better traffic and delivery systems could reduce the amount of fuel wasted on transportation while lowering the cost of moving goods.
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