NNPCL fuel discount: Oyedele makes five clarifications on N1,350/litre petrol price

The Minister of Finance, Taiwo Oyedele, has made 5 cardinal clarifications regarding the caller announcement of a substance terms discount astatine Nigerian National Petroleum Company Limited, NNPCL, filling stations.

In a connection helium personally signed connected Friday, Oyedele said the discounted petrol terms of N1,350 per litre astatine NNPCL filling stations does not magnitude to a instrumentality of substance subsidy.

According to him, nary nationalist funds would beryllium utilized to screen the discount astatine NNPCL filling stations.

See the afloat connection below:

Since October 1, 2026, motorists person been paying little for petrol astatine NNPC Retail Limited stations pursuing a discount connected the company’s retail margin. We invited the alleviation this brings to households, commuters and transporters.

Some commentators person described the discount arsenic a instrumentality of substance subsidy. That is not correct. Here, plainly, is what the discount is and what it is not.

1. A Margin Discount and a Subsidy Are Not the Same

Every marketer adds a borderline to the terms it pays for the substance it sells. A borderline discount means the retailer chooses to instrumentality a smaller margin, oregon nary borderline astatine each for a period, and passes the savings connected to the customer. The outgo of the discount is borne by the retailer alone.

A subsidy is different. It is erstwhile the authorities pays portion of the terms the user would other...