The Presidency has rejected African Democratic Congress (ADC) presidential candidate Atiku Abubakar’s claim that the Nigerian National Petroleum Company Limited (NNPCL) fuel discount amounts to a return to petrol subsidy.
The government explained that NNPC Retail introduced the discount to mark Nigeria’s 66th Independence anniversary and has offered to extend the arrangement for another 30 days.
Sunday Dare, Special Adviser to President Bola Tinubu on Media and Public Communications, made the clarification in a statement on Sunday. He said the arrangement would allow NNPC Retail to sell petrol at landing cost for 30 days amid rising global crude oil prices.
“When NNPC Retail agrees to sell fuel at landing cost for 30 days during an unprecedented global crude price spike, it is not writing checks to opaque import cartels.”
Dare added that the decision was backed by President Bola Ahmed Tinubu and aimed to cushion the impact of short-term price changes.
He also defended the negotiated interim ceiling of ₦1,350 per litre on ex-gantry costs, describing it as “a structural shock absorber, not price control.”
According to Dare, refiners and importers would absorb temporary cost increases above the ceiling and recover them later when crude prices fall or exchange rates improve. He said the ceiling would undergo monthly reviews based on published cost audits.
Dare argued that stable petrol prices would provide greater economic certainty than frequent increases and reductions, which often push up transport fares without guaranteeing that they will later fall.
He also criticised Atiku’s proposed production subsidy on petrol, calling it “a dangerous mathematical fantasy wrapped in political deceit.”
Citing Finance Minister Taiwo Oyedele, Dare noted that Nigeria produces about 1.8 million barrels of crude oil daily for a population exceeding 200 million, but the government does not directly own all the crude.
He warned that a production subsidy without sufficient crude supplies could revive the opacity and financial losses associated with the previous subsidy system.
The Presidency added that domestic refiners, including Dangote Petroleum Refinery, require more crude than the government can freely supply without breaching existing international contracts. This explains why local refiners also import crude oil.
Do you think temporary fuel price measures can provide stability without bringing back petrol subsidies?
