‘What cutting fuel price really means’ – Presidency explains

The Presidency has clarified the Federal Government’s plan to reduce the burden of rising petrol prices on Nigerians.

According to the government, the Nigerian National Petroleum Company (NNPC) will suspend its retail profit margin and sell petrol at cost for the next 30 days, targeting vulnerable households and commercial transport operators.

The clarification was contained in a statement on Thursday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.

The Presidency said the new arrangement was announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Thursday, as part of fresh measures to cushion the effect of the recent hike in global crude oil and petrol prices.

Under the plan, NNPC Retail will sell petrol without its usual profit margin during the 30-day period. This means if the landing cost is N1,300 per litre, the company will sell at N1,300 without adding any margin.

The measure, which has the backing of President Bola Tinubu, is expected to prioritise public transport operators and offer some relief to households struggling with high transport and living costs.

Oyedele stressed that the decision should not be seen as a return to the petrol subsidy removed by Tinubu on May 29, 2023. He expressed hope that other marketers would take a cue from NNPC as the government responds to rising global prices.

The Presidency added that the increase in international crude prices and its pressure on local petrol prices are not expected to last forever, hence the need for a temporary measure to ease the burden on Nigerians without rolling back fuel market reforms.

“The Nigerian National Petroleum Company (NNPC) agreed today to forgo its petrol retail profit margin and sell to Nigerians at cost to cushion the impact of global crude oil price shocks and volatility on vulnerable households.

“NNPC Retail, which already sells petrol at the lowest price in the market, will offer this new deal within the next 30 days. This means if NNPC’s landing cost is N1,300, it will sell fuel to Nigerians, especially commercial transport operators, at the same price.

“The company’s discount gesture, backed by President Bola Ahmed Tinubu, was among the raft of measures the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced today,” the Presidency said in a statement.

‘What cutting fuel price really means’ – Presidency explains