FG not restoring fuel subsidy, Presidency clarifies

The Presidency has said the decision of the Nigerian National Petroleum Company Limited (NNPC) to sell petrol at a discounted rate at its retail outlets across the country should not be misconstrued for a return to fuel subsidy regime.

Bayo Onanuga, Special Adviser to the President, Information & Strategy, made the clarification in a statement on Thursday night.

Onanuga noted that the NNPC took the decision to forgo its petrol retail profit margin and sell it to Nigerians at cost to cushion the impact of global crude oil price shocks and volatility on vulnerable households.

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“NNPC Retail, which already sells petrol at the lowest price in the market, will offer this new deal within the next 30 days. This means if NNPC’s landing cost is N1300, it will sell fuel to Nigerians, especially commercial vehicles, at the same price.

“The company’s discount gesture, backed by President Bola Ahmed Tinubu, was among the raft of measures the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced today.

“Oyedele said he hoped other marketers would take a cue from the NNPCL, as the sharp rise in crude and petrol prices is not expected to last long.

“Oyedele was emphatic that NNPC agreeing to sell at a discount must not be misinterpreted as the restoration of petrol subsidy, which ended on May 29, 2023.”

Listing other measures by the federal government to to shield pump prices from global market volatility, which includes forward sales of crude to domestic refineries, a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable, a reform of the 2025 Tax Law, amongst other measures, the statement maintained that the present administration has no commitment to return the discarded subsidy regime.

“To be clear, none of these measures restores a blanket subsidy. Doing so would create longer-term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk.

“The Presidency acknowledged the challenges the people face over the high cost of fuel.

“Removing the fuel subsidy came at a price. But the alternative has been tried. Nigeria has already lived through that cycle: scarcity, smuggling, a collapsing currency and a fiscal crisis. We cannot afford to live through it again, least of all in response to a temporary disruption, and at the very moment the results of reform are gathering pace.

“Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity. It is to ensure its gains reach more Nigerians, faster and in more tangible ways. That is our work, and we are committed to doing it.

“The Federal Government is also working on a comprehensive package of fiscal measures to bring inflation down to single digits sustainably in the near term.“