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FG directs NNPC to stop petrol discount at end of 30-day duration

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Minister of Finance and Coordinating Minister for Economy, Taiwo Oyedele, has said the federal government had directed the Nigerian National Petroleum Company Limited (NNPC) to stop its petrol discount at the expiration of the 30-day duration.

The minister said this while speaking with BBC in Thailand. He said that the petrol discount should not be misinterpreted as a return to era of petrol subsidy. “We’re clear that we’re not bringing back subsidy because it’s not sustainable,” he said.

The minister said the government had also directed the NNPC to limit the discount to its retail profit margin, rather than absorb the full cost of petrol or sell below commercial prices.

“They buy at commercial price. They add their costs of transportation, overhead for running the stations and their retail margin. We said limit the discounts to your retail margin and do it for 30 days and prioritise public transporters,” he said.

The minister said the corporation would review the discount at the end of the 30-day period and submit a report to the government before any further decision would be taken.

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