Minister Explains NNPC Fuel Discount, Says Subsidy Has Not Returned

 

The Minister of Information and National Orientation, Mohammed Idris, has defended the Nigerian National Petroleum Company Limited’s (NNPC Ltd.) petrol discount, insisting that the initiative should not be regarded as a return to fuel subsidy.

The minister explained that the temporary discount was introduced as a measure to cushion the impact of rising energy costs on Nigerians. According to him, NNPC is absorbing part of the reduction through its profit margin rather than receiving government funds to subsidise the product.

Idris said the decision was aimed at providing immediate relief to motorists and households while the Federal Government continues with its ongoing economic reforms.

The NNPC had introduced the petrol discount at its retail stations nationwide, with the arrangement scheduled to run for a limited period. The company described the initiative as a customer-relief measure and maintained that it does not reverse Nigeria’s market-based petrol pricing system.

The minister stressed that the current arrangement is different from the previous fuel subsidy regime, under which government funds were used to cover the difference between the regulated pump price and the actual cost of importing or supplying petrol.

He said the NNPC’s decision to reduce part of its profit margin was a commercial decision intended to provide temporary relief to Nigerians without returning the country to the former subsidy system.

The development has nevertheless generated reactions from opposition politicians, labour groups and other stakeholders, with some questioning whether the arrangement could effectively amount to a form of subsidy.

Despite the concerns, the Federal Government has maintained that the petrol discount is temporary and does not represent a reversal of the petroleum-sector reforms implemented since the removal of fuel subsidy.

The government said it would continue to explore measures aimed at reducing the impact of high energy costs on Nigerians while maintaining its broader economic reform agenda.