The petrol discount offered by the Federal Government through the Nigerian National Petroleum Company Limited (NNPCL) will run for an initial 30 days, Finance Minister Taiwo Oyedele has said.
Mr Oyedele announced the arrangement on Thursday at a briefing on petrol prices and subsidy-related issues in Abuja.
He said the government would sell the petrol at cost during the period. He also said the measure would give priority to public transport operators across the country.
“We are offering a discount on petrol dispensed by NNPCL for the next 30 days in the first instance, with priority for public transporters nationwide,” Mr Oyedele said.
He stressed that the petrol discount should not be regarded as a return to the fuel subsidy system.
According to the minister, the government is instead absorbing part of the cost to allow selected consumers, particularly public transporters, to access petrol at a lower price.
The announcement comes amid continued public attention on petrol prices and the impact of fuel costs on transport and household expenses.
Mr Oyedele said the arrangement would initially last for 30 days. The government has not, however, announced whether it will extend the measure beyond that period.
The policy will apply to petrol dispensed by NNPCL, according to the minister.
Public transport operators are expected to receive priority under the arrangement. The government has yet to provide further details on how the discount will be administered or the exact amount of the price reduction.
The petrol discount is therefore expected to provide temporary relief for public transport operators while the government maintains that the measure is different from a conventional fuel subsidy.
Further details on the implementation of the arrangement are expected from the Federal Government and NNPCL.
