By Mahmoud
The Federal Government has announced a 30-day discount on petrol sold at filling stations owned by the Nigerian National Petroleum Company Limited, NNPC, as a new measure to cushion the effect of high fuel price and ensure price stability.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at a press briefing in Abuja on Thursday.
Oyedele clarified that the discount is not a subsidy, but an arrangement to sell petrol at cost price, with priority given to public transporters across the country.
He further revealed that government plans to peg petrol price from the refinery at N1,350 per litre, which will be reviewed monthly to prevent global crude oil price volatility or foreign exchange fluctuations from causing immediate hike at filling stations.
According to him, where the price exceeds N1,350, refiners and importers will initially absorb the extra cost and recoup it later when market conditions improve. He stressed that the initiative is not subsidy or price control, but a price stabilisation strategy aimed at avoiding frequent price changes which cause confusion among Nigerians, as fuel prices rarely come down quickly once increased.
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