Petrol Discount: Oyedele Reveals Who Is Funding Tinubu Government’s 30-Day Plan

Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, has said the 30-day petrol discount offered by Nigerian National Petroleum Company Limited (NNPC) Retail could benefit consumers and the government without reintroducing fuel subsidy.

Oyedele explained that the initiative was being funded entirely from the company’s retail profit margin rather than public revenue.

The minister had earlier announced that customers would enjoy reduced petrol prices at NNPC filling stations for 30 days, prompting the need to clarify how the arrangement differs from the subsidy policy abolished in 2023.

In a statement on Friday, he welcomed the temporary relief for households, commuters and transport operators, while stressing that the discount remained a commercial decision.

He explained that when a retailer reduces its profit margin, it absorbs the financial impact itself. Fuel subsidy, by contrast, involves the government paying part of a product’s cost with public funds.

Read Also: I Lost 2023 Election, It Broke My Heart – Banky W Opens Up On Painful Experience

According to Oyedele, NNPC Retail buys petrol from Dangote Refinery and other suppliers at market prices before applying its retail margin to determine the pump price.

He said the company was responsible for bearing the cost of the temporary reduction and that the discounted price remained market-reflective.

The minister noted that selling crude oil owned by the Federation below market value would be different because the resulting shortfall could affect government revenue.

Oyedele defended the decision to reduce the company’s margin, saying it aligned with NNPC Retail’s responsibility to support the nationwide distribution and affordability of refined petroleum products.

He also noted that the company had operated in petroleum marketing and retail for more than 20 years and had historically sold petrol at prices below those of some competing marketers.

Addressing concerns about the potential effect on profits and dividends, the minister said lower earnings per litre did not necessarily mean lower overall profitability.

He argued that the discount could encourage more customers to patronise NNPC stations, increasing sales volumes and strengthening customer loyalty.

According to him, the resulting increase in sales could compensate for the reduced margin and potentially improve the company’s overall earnings.

Oyedele said such an outcome could allow the government to receive higher dividends while consumers benefit from lower pump prices.

He maintained that the arrangement was a market-based commercial strategy and not a reversal of the Federal Government’s decision to end fuel subsidy in 2023.