For millions of Nigerians groaning under soaring transport fares, help has finally come.
The Federal Government on Thursday rolled out a major cost-of-living relief package, slashing petrol prices and capping landing cost at N1,350 per litre to cushion the effect of global energy crisis.
30-Day Price Slash For Nigerians
In a dramatic intervention, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced a 30-day discount on petrol pump prices nationwide.
Under the deal, NNPC Retail, which already sells at the lowest price in the market, will dispense fuel without adding its retail profit margin, with priority for public transport operators.
Oyedele explained: If NNPC landing cost is N1,300 per litre, it will sell at N1,300, not N1,400. The idea is to cut operating cost for drivers and force down transport fares.
The minister said other marketers are expected to follow suit, insisting the global price surge triggered by the U.S./Israel-Iran war will not last forever.
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N1,350 Ceiling To Stop Wild Price Swings
Beyond the 30-day window, government is negotiating a ceiling of N1,350 per litre on ex-gantry and landing cost.
Refiners and importers will absorb anything above the ceiling and recover later when crude prices or exchange rate improve.
“This is not subsidy, not price control. It is price smoothing,” Oyedele stressed.
He argued that stability matters: N1,400 today and N1,400 tomorrow is better than N1,500 today and N1,300 tomorrow, because volatility itself creates uncertainty.
The ceiling will be reviewed monthly and published for transparency.
CNG, Cash Transfer, Fuel Reserve Coming
The relief goes beyond petrol. Government is increasing cash transfers to vulnerable households, expanding subsidised credit for small businesses, and pushing Compressed Natural Gas.
According to government data, over 120,000 vehicles now run on CNG, with 400 conversion centres, 96 refuelling stations and 550 CNG buses. Fares have dropped by 30-50% where CNG buses operate.
Other measures include forward sale of crude to local refiners, naira-for-crude deal to cut dollar demand, clampdown on illegal road taxes, and creation of a National Strategic Fuel Reserve to check hoarding and artificial scarcity.
There will also be excess-profit tax on operators exploiting consumers.
Presidency: No Return To Subsidy
The Presidency, through Bayo Onanuga, insisted there is no going back to subsidy.
“Removing subsidy came at a price, but the alternative is scarcity, smuggling and fiscal crisis. We cannot afford to live through it again,” the statement said.
But opposition parties, including ADC, NDC and APM, dismissed the plan as tokenism, asking: What happens on Day 31?
