The Nigerian National Petroleum Company (NNPC) Ltd has ruled out a return to petrol subsidy noting that the ongoing pump price discount is a temporary customer relief measure that does not change Nigeria’s market based fuel pricing system.
The clarification comes amid renewed attention to the impact of rising petrol prices on households and businesses, following comments by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on October 8.
In a statement issued on Friday, NNPC’s Chief Corporate Communications Officer, Andy Odeh, said the company had introduced the discount on October 1 as part of activities marking Nigeria’s 66th Independence Anniversary and would sustain it across its retail outlets nationwide until October 31.
The company said the initiative was intended to ease the burden of elevated global crude oil prices linked to the conflict in the Middle East, which have contributed to higher domestic petrol prices.
NNPC, however, stressed that the discount applied only to its retail stations and did not amount to a uniform price reduction across the country.
It also maintained that the initiative did not alter the market based pricing framework for petroleum products, distancing the offer from a government subsidy arrangement.
The company said it would continue to work with the Federal Government and other stakeholders to cushion the effects of rising fuel prices while maintaining reliable product supply and commercially responsible operations.
