FG unveils new petrol price plan, targets reduced cost at NNPC filling stations
FG negotiates a N1,350 petrol price ceiling to stabilise pump prices, with a fuel reserve, CNG expansion and excess profit tax to fund worker support.
Petrol pricing has remained one of Nigeria's most contentious economic issues since the removal of the long-standing fuel subsidy in mid-2023, a move that saw pump prices more than triple and fuelled inflation across the economy. NNPC Retail, the downstream arm of the Nigerian National Petroleum Company, operates one of the country's largest networks of filling stations and has often set the benchmark price that other marketers follow, making any shift in its pricing strategy significant for households and businesses nationwide.
The newly announced plan, which reportedly involves pegging prices at landing cost and introducing a price ceiling alongside measures like a fuel reserve, expanded CNG adoption and a windfall tax to support workers, has already stirred debate over whether it signals an informal return to subsidy payments the government previously said it had ended. Coverage so far agrees on the broad outline of the plan but differs in emphasis — with some reports focusing on the mechanics of the proposed price cap and others on the political sensitivity of the subsidy question — while details on funding sources, implementation timelines and who will bear the cost remain unclear.