The Federal Government has introduced a 30-day petrol discount through the Nigerian National Petroleum Company Limited (NNPC) to ease the burden of rising fuel costs on households and businesses, with public transport operators expected to receive priority.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the measure on Thursday during a briefing in Abuja on petrol prices and the government’s position on fuel subsidy.

Oyedele said the arrangement would allow the government to sell petrol through NNPC at cost, stressing that it was not a return to the fuel subsidy regime.

The initiative forms part of broader efforts to reduce the impact of rising petrol prices and transport fares on Nigerians.

The minister also announced plans to establish a ceiling of ₦1,350 per litre on petrol’s ex-gantry or landing cost under a price modulation mechanism. The proposed limit is intended to reduce the immediate effect of fluctuations in international crude oil prices and foreign exchange rates on domestic fuel costs.

However, the ceiling does not mean motorists will necessarily buy petrol at ₦1,350 per litre at filling stations, as retail prices may vary.

Under the proposed arrangement, refiners and fuel importers would initially absorb any costs above the ceiling and recover the difference later when market conditions improve.

Oyedele said the mechanism was designed to make petrol prices more predictable rather than impose direct price controls. He added that the ceiling would be reviewed monthly, with the figures made public to promote transparency.

The government’s intervention comes amid continued pressure from elevated fuel and transportation costs, which have increased expenses for consumers and businesses.

The 30-day discount will initially prioritise public transport operators nationwide, although the government has not described the arrangement as a permanent measure.