FG Announces 30-Day Fuel Discount As Pundits Warn Of Looming Challenges
The Federal Government has begun to introduce measures that will lower petrol price in the country and ease economic hardship for the citizens. However, pundits have submitted that these measures come with anticipated implementation challenges, such as the potential for long vehicle queues at NNPC service stations where commercial drivers may rush to buy the discounted product.
The commercials drivers may also buy and resell and this will defeat the aim and objectives of introducing cushioning measures, as transportation costs will remain high.
The government plans to make cheaper petrol available to Nigerians at filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL) for a 30-day period. This temporary initiative aims to provide relief to households and transport operators who are currently grappling with high energy and living costs. Consequently, long queues are expected to form at NNPC service stations nationwide.
Team@orientactualmags.com learned that Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, disclosed the plan in Abuja on Thursday, noting that the discount will specifically prioritize public transport operators.
‘There will be a discount on NNPC petrol for the next 30 days, with priority given to public transporters’ he said.
He also said the Federal Government will negotiate a lower landing cost for petrol, which will be subject to a monthly review.
Furthermore, Oyedele announced that the Federal Government is targeting a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol. This proposed ceiling does not mean petrol will retail for ₦1,350 per litre at filling stations. Instead, it is intended to prevent sharp movements in global crude prices or foreign exchange rates from immediately translating into higher pump prices.
‘Pump prices should not have to follow every swing in global crude or exchange rates. The government is negotiating a ceiling of ₦1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable’ he said.
Mr Oyedele added that if the landing cost rises above the ceiling, refiners and importers will initially bear the shortfall and recover it later when market conditions allow while adding that the arrangement is neither a subsidy nor price control, but a mechanism designed to smooth out petrol prices over time.
‘The reasoning is simple, N1,400 a litre today and N1,400 a litre tomorrow is better than N1,500 a litre today and N1,300 a litre tomorrow. Why? Because volatility itself adds to uncertainty and cost and when fuel goes up sharply, they rarely come down as fast’ he said.
The minister added that the ceiling would be reviewed monthly, with the figures published for transparency.
Recall that President Bola Tinubu had in his inaugural speech on May 29,2023, announced the end of fuel subsidy in his famous quote ‘subsidy is gone’.
Recall also that ahead of the 2027 presidential election, the leading presidential candidates have announced the decision to looking into the issue of fuel prices especially petrol.
ADC presidential candidate, Alhaji Atiku Abubakar was the first to make a committal comment by saying he will restore petrol subsidy. NDC presidential candidate, Mr Peter Obi said he will also do the same but ensure that its implementation is corruption-free-Team@orientactualmags.com Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08035023079, 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com. Thank you
