Nigeria offers 30-day petrol discount before election

Nigeria will offer a 30-day petrol discount through state oil company NNPC, with priority for public transport operators, Finance Minister Taiwo Oyedele said Thursday as the country heads toward elections.

Oyedele said the measures were intended to cushion households and businesses against energy shocks while avoiding a return to fuel subsidies. He did not specify the discounted price.

Petrol prices have risen to about 1,400 naira, or $1.00, per litre from 830 naira before the war in the Middle East. Prices were lower before President Bola Tinubu removed costly fuel subsidies after taking office in 2023.

Oyedele said the discount was not a subsidy and that the government was saying fuel would be sold “at cost.” NNPC runs a large network of petrol stations across Nigeria.

The government also plans what Oyedele called “price modulation” to moderate pump price volatility. He said officials were negotiating a ceiling of 1,350 naira a litre, with refiners and importers carrying any shortfall above the ceiling and recovering it later when crude prices or exchange rates allow. He said the ceiling would be reviewed monthly.

The Nigeria Democratic Congress, fielding presidential contender Peter Obi, called the price relief an attempt to reintroduce petrol subsidy “through the backdoor.” Obi told AFP last month he would bring down consumer prices partly by cracking down on corruption.

Opposition candidate Atiku Abubakar also criticised the 30-day relief, asking what would happen after the measure expires. Abubakar has proposed a targeted subsidy tied to fuel refined in Nigeria.

Nigerians are due to vote on January 16, with Tinubu seeking a second term.