NNPC Breaks Silence on Fuel Discount, Says Subsidy Is Not Back

BY TAIBAT UMMI YAKUBU

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has dismissed suggestions that its ongoing fuel price discount signals a return to petrol subsidy, insisting that the initiative is only a temporary measure to ease the financial pressure on Nigerians.

The company said the discount was introduced to cushion the effects of rising petrol prices on households, businesses and the wider economy as global crude oil prices remain elevated amid tensions linked to the conflict in the Middle East.

In a statement issued on Friday, NNPC’s Chief Corporate Communications Officer, Andy Odeh, explained that the initiative began on October 1 as part of activities marking Nigeria’s 66th Independence Anniversary. He said the offer would remain in place until October 31, 2026, at NNPC retail stations across the country.

According to the company, the decision reflects its commitment to supporting the Federal Government’s efforts to reduce the burden of increasing fuel costs on Nigerians without reversing the market-based pricing system introduced following the removal of petrol subsidy.

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NNPC said the discount was also consistent with the government’s broader response to the recent surge in international crude oil prices. The clarification followed an October 8 statement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on measures aimed at providing relief to Nigerians amid rising global energy costs.

“This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy,” Odeh stated, stressing that the company’s intervention should not be mistaken for a reversal of existing petroleum pricing policies.

The oil company further explained that the price reduction applies only to its retail outlets and does not establish a uniform petrol price nationwide. It added that the initiative neither changes the market-driven pricing framework nor signals a return to government-funded fuel price support.

Describing the discount as a practical response to prevailing market uncertainty, NNPC maintained that it was seeking to offer customers temporary relief while ensuring its operations remained commercially sustainable.

The company also urged Nigerians to disregard interpretations suggesting that the discount marked the return of fuel subsidy, reiterating that the initiative was limited in scope and duration.

With the discount scheduled to run until October 31, the key question for motorists and businesses is how much relief the temporary price reduction will provide as fuel prices continue to respond to movements in the international oil market. NNPC’s clarification makes clear that the initiative is not a reinstatement of the former subsidy regime, but a short-term customer support measure.