NNPC Petrol Discount Is Commercial, Not Fuel Subsidy, Oyedele Says

The Federal Government says NNPC Retail’s petrol price reduction is not a return to fuel subsidy because no public funds are being used to finance it. Taiwo Oyedele said the lower price, which took effect on October 1, 2026, comes from NNPC Retail accepting a smaller profit margin on petrol bought from Dangote Refinery and other suppliers. He said the company may recover the lower margin through higher sales volumes, customer loyalty and market share. He added that the Federation Account and the federal budget are not funding the discount. The government is also pursuing CNG transport, tax and duty waivers, and the removal of illegal levies to reduce fuel-related costs for consumers and businesses.

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