For the next 30 days, the Federal Government will provide a national discount on gasoline dispensed by NNPC, with priority given to public transportation.
The government will sell gasoline at cost, according to Finance and Coordinating Minister of the Economy Taiwo Oyedele, so the measure is not a subsidy.
“We are offering a discount on petrol dispensed by NNPC for the next 30 days in the first instance, with priorities for public transporters nationwide.
It is not a subsidy. Government is saying we will sell to you at cost price,” Oyedele
“Pump prices should not have to follow every swing in global crude or the exchange rate. 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.
“The reasoning is simple: ₦1,400 a litre today and ₦1,400 a litre tomorrow is better than ₦1,500 a litre today and ₦1,300 a litre tomorrow,” he said. “Why? Because volatility itself adds to uncertainty and cost, and when fuel goes up sharply, they rarely come down as fast.”
“To be perfectly clear, none of these measures restores a blanket subsidy. To do so would amount to creating 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.”
With the election drawing closer, more incentives and giveaways may be announced as political activity intensifies. Voters should assess such offers carefully and consider the policies and plans behind them.
