The Nigerian National Petroleum Company (NNPC) Retail Limited is set to adjust its petrol pricing strategy, temporarily giving up its profit margin and selling the product at cost for the next 30 days as the Federal Government moves to cushion Nigerians against rising fuel prices.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, said this on Thursday
October 8, 2026, in a press statement qouting the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Under the arrangement backed by President Bola Ahmed Tinubu, NNPC Retail will sell petrol at its actual landing cost instead of adding its retail margin. Thus, if the company’s landing cost is N1,300 per litre, it will sell the product at N1,300 per litre, with commercial transport operators and vulnerable households expected to benefit from the measure.
The move as announced by Oyedele, is said to be part of a package of measures aimed at shielding Nigerians from the impact of rising global crude oil and petrol prices.
NNPC Retail already sells petrol at the lowest price in the market, according to the Presidency.
Oyedele urged other petroleum marketers to emulate the state-owned company, saying the current surge in crude oil and petrol prices was not expected to persist.
He, however, stressed that the temporary reduction in NNPC Retail’s margin should not be interpreted as a return to the petrol subsidy regime abolished on May 29, 2023.
The minister also disclosed that the Federal Government was negotiating a N1,350-per-litre ceiling on the cost of petrol before it gets to filling stations, in a bid to prevent sharp increases in pump prices.
Under the proposed arrangement, refiners and importers would absorb any costs above the ceiling and recover the difference later when crude oil prices or exchange rates become more favourable.
Oyedele said the proposal was aimed at reducing price volatility rather than controlling the market.
“This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppressing them,” he said.
He explained that relatively stable prices would provide greater certainty for households and businesses than sudden increases followed by slower reductions.
The proposed ceiling would be reviewed monthly, with the figures published for transparency.
*FG plans more crude for local refineries*
The government is also introducing forward sales of crude oil to domestic refineries.
Oyedele said the arrangement, alongside rising crude production and the release of previously committed crude, would help protect domestic fuel prices from fluctuations in the international market.
The Federal Government said it is also working with state governments and security agencies to curb the collection of road taxes and levies that increase transport and logistics costs.
Under the 2025 tax reform laws, the government said it would move against such charges while increasing funding for cash transfers to vulnerable households and subsidised credit for small businesses and consumers.
*CNG rollout to accelerate*
The Federal Government is also accelerating the rollout of Compressed Natural Gas (CNG) in partnership with state governments.
The government said CNG is between 60 and 70 per cent cheaper than petrol and expects transport operators to pass the savings on to passengers through lower fares.
Government targets profiteering
The government is considering an excess profit tax on operators found to be taking undue advantage of consumers anywhere along the energy value chain.
Oyedele said proceeds from any such tax would be used to cushion the impact of fuel prices through transport support or vouchers for vulnerable urban minimum-wage earners.
The government also plans to work with the National Assembly on enhanced tax relief for low-income earners under the 2027 Finance Bill.
It is also cutting regulatory costs that increase the cost of doing business and ultimately push up the prices of goods and services.
Strategic fuel reserve planned
The Federal Government said it was investing in a National Strategic Fuel Reserve to protect households and businesses from future energy supply disruptions.
The reserve would allow refined petroleum products to be released into the market under published rules whenever global disruptions or hoarding threaten supply and price stability.
The Presidency said the reserve would not be used to fix prices or restore subsidy, but to prevent artificial scarcity, discourage market manipulation and reduce sudden price shocks.
The government is also directing traffic management agencies to improve traffic flow in major urban centres in order to reduce fuel consumption.
The Presidency said NIPOST’s newly launched address codes would equally help make logistics operations more efficient and cheaper.
Presidency rules out subsidy return
The Presidency acknowledged the hardship caused by high fuel prices but maintained that the government would not return to the blanket petrol subsidy regime.
It said the removal of subsidy had come at a cost but argued that returning to the old system could revive problems associated with fuel scarcity, smuggling, currency pressures and fiscal instability.
“Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity,” the Presidency said.
It added that the objective was to ensure that the gains of the reforms reached more Nigerians “faster and in more tangible ways.”
The Federal Government also said it was working on a comprehensive package of fiscal measures aimed at bringing inflation down sustainably to single digits.
Read full statement by Onanuga below:
STATEHOUSE PRESS RELEASE
NNPC RETAIL FORGOES PETROL PROFIT MARGIN TO OFFER SOME SUPPORT TO NIGERIAN HOUSEHOLDS AMID GLOBAL PETROL CRISIS; FG ANNOUNCES ADDITIONAL MEASURES
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 N1300, it will sell fuel to Nigerians, especially commercial vehicles, 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.
Oyedele said he hoped other marketers would take a cue from the NNPC, as the sharp rise in crude and petrol prices is not expected to last long.
Oyedele was emphatic that NNPC agreeing to sell at a discount must not be misinterpreted as the restoration of petrol subsidy, which ended on May 29, 2023.
In addition, Oyedele announced forward sales of crude to domestic refineries. As production rises and previously committed crude is freed up, this is expected to shield pump prices from global market volatility.
Oyedele also said the Federal Government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol, to keep pump prices stable. Where costs rise above the ceiling, refiners and importers will carry the shortfall and recover it later, when crude prices or the exchange rate allow, without breaching the ceiling.
“This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppressing them. The reasoning is simple. 1,400 naira a litre today and 1,400 tomorrow is better than 1,500 today and 1,300 tomorrow, because volatility itself adds to uncertainty and cost. And when fares rise sharply, they rarely fall as fast. The ceiling will be reviewed monthly, reset as costs require, and the figures published for transparency,” Oyedele said.
Oyedele also said that, under the 2025 tax reform laws, the Federal government, in collaboration with the states and security agencies, is reining in the collection of road taxes and levies that inflate fares and logistics costs.
The Federal government is also increasing funding for cash transfers to the most vulnerable households and subsidised credit for small businesses and consumers.
Other measures announced:
A faster CNG rollout:
The federal government is scaling up CNG deployment with the states. The government expects transporters to pass the savings on to passengers in lower fares. CNG is 60-70 per cent cheaper than petrol.
An excess profit tax:
This will be considered for operators who take undue advantage of consumers, anywhere along the energy value chain. The government said it will use proceeds from taxes on price gouging exclusively to cushion the impact of fuel prices through transport support or vouchers for urban minimum-wage earners, who are most vulnerable. The Federal Government will also work with the National Assembly to consider enhanced tax relief for low-income earners under the 2027 Finance Bill.
Less red tape: The Federal Government is cutting regulatory costs that feed into the cost of doing business and, indirectly, into higher prices of goods and services.
National Strategic Fuel Reserve:
To protect households and businesses from future energy shocks, the Federal Government is investing in a National Strategic Fuel Reserve. The government will release refined products into the market under clear, published rules whenever a global disruption or hoarding threatens supply and price stability. This is not a subsidy, and it does not fix prices; rather, it secures supply and reduces price volatility. It will prevent artificial scarcity, deter market manipulation, and anchor long-term energy security, so a deregulated market delivers stable growth rather than sudden price shocks.
Better traffic and logistics management:
Traffic management agencies will improve traffic flow, especially in major urban centres, to reduce fuel consumption. Also, NIPOST’s newly launched address codes will help make logistics more efficient and cheaper.
To be clear, none of these measures restores a blanket subsidy. Doing so would create longer-term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk.
The Presidency acknowledged the challenges the people face over the high cost of fuel.
“Removing the fuel subsidy came at a price. But the alternative has been tried. Nigeria has already lived through that cycle: scarcity, smuggling, a collapsing currency and a fiscal crisis. We cannot afford to live through it again, least of all in response to a temporary disruption, and at the very moment the results of reform are gathering pace.”
“Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity. It is to ensure its gains reach more Nigerians, faster and in more tangible ways. That is our work, and we are committed to doing it.
“The Federal Government is also working on a comprehensive package of fiscal measures to bring inflation down to single digits sustainably in the near term.”
Bayo Onanuga
Special Adviser to the President
(Information & Strategy)
October 8, 2026