President Bola Tinubu has approved a new fuel price measure aimed at limiting petrol landing costs to N1,350 per litre and directing the Nigerian National Petroleum Company Limited to sell petrol at cost for 30 days, as rising fuel prices intensify pressure on households ahead of the 2027 general election.
Finance Minister Taiwo Oyedele announced the measures on Thursday, October 8, 2026, in Abuja, following a fresh increase in global crude oil prices linked to tensions in the Middle East. Petrol prices at filling stations in several Nigerian cities have climbed above N1,400 per litre, increasing transport costs and adding to the financial strain on families and businesses.
The announcement has triggered political debate over whether the intervention will deliver meaningful relief to Nigerians or serve as a temporary response to growing public anger over the cost of living ahead of the election.
NNPC to sell petrol without profit for 30 days
Under the plan, NNPC Retail will temporarily suspend its profit margin and sell petrol at its actual landing cost for 30 days. Public transport operators will receive priority under the arrangement, according to the details provided by the government.
For example, if the landing cost of petrol is N1,300 per litre, NNPC Retail will sell it at that price rather than adding its usual profit margin.
The programme is expected to begin within 30 days of the announcement. The government hopes the temporary arrangement will reduce the immediate burden of fuel costs on commuters, transport workers and other Nigerians who depend on petrol for their daily activities.
Recent prices at NNPC filling stations in Lagos, Rivers State and Abuja have reportedly ranged between approximately N1,355 and N1,380 per litre, following earlier prices of around N1,420 to N1,450 after reductions associated with the Dangote refinery.
The actual price paid by motorists will depend on the applicable landing cost and the implementation of the new arrangement.
Government negotiates N1,350 price ceiling
Beyond the temporary NNPC discount, the government is negotiating a ceiling of N1,350 per litre on petrol landing or ex gantry costs.
The objective is to reduce the frequency and severity of price increases caused by fluctuations in international crude oil prices and the exchange rate.
Under the proposed arrangement, refiners and importers would initially bear any costs above the agreed ceiling and recover the difference later when market conditions improve.
The ceiling would be reviewed monthly, with the relevant figures published to provide greater transparency about the cost of supplying petrol.
However, the N1,350 figure is a proposed ceiling on landing or ex gantry costs, not a confirmed nationwide pump price. The price motorists pay at filling stations may differ depending on distribution expenses and other market factors.
The government says the arrangement is intended to limit sudden price shocks without returning to the former petrol subsidy system.
The Presidency has stressed that the measure is not a return to fuel subsidies or a government imposed pump price. Presidential spokesman Bayo Onanuga said the decision was intended to protect Nigerians from sudden increases in global fuel prices while maintaining the market based pricing system introduced after subsidy removal.
The government has warned that restoring the former subsidy system could place a heavy burden on public finances. A full return to the old arrangement could cost more than N20 trillion annually, while a subsidy of N500 per litre could exceed N16 trillion a year, according to the estimates cited in the announcement.
From N830 to more than N1,400 per litre
Before the latest global oil price increases, petrol was selling at approximately N830 per litre when crude oil prices stood near 70 dollars per barrel.
Prices subsequently rose as international oil markets reacted to tensions in the Middle East and other supply concerns. By September 2026, petrol prices that had been around N1,200 per litre began moving towards N1,400 and above in some locations, including parts of northern Nigeria.
The increase has affected transport fares, food distribution, manufacturing and the cost of running small businesses. Even with increased domestic refining, many Nigerians continue to face high fuel costs.
Tinubu removed the petrol subsidy on May 29, 2023, shortly after taking office. The decision led to a sharp increase in petrol prices and triggered widespread public concern about the cost of living.
The latest intervention comes as the administration faces renewed calls to provide lasting relief to households struggling with high transportation expenses, food prices and other essential costs.
Government plans fuel reserve and cash support
Beyond the 30-day NNPC Retail arrangement, the government has outlined additional measures intended to protect vulnerable Nigerians from future fuel price shocks.
These include establishing a national strategic fuel reserve, expanding cash transfers to poor households and accelerating the adoption of compressed natural gas vehicles.
A strategic fuel reserve could help the country manage temporary supply disruptions, while cash transfers are intended to provide direct financial support to eligible households.
The government is also encouraging other petrol marketers to consider similar measures to help reduce the burden on consumers during the period of unusually high prices.
However, the impact of these initiatives will depend on how quickly they are implemented, how many households receive assistance and whether the savings translate into lower transport and food costs.
Atiku rejects the temporary relief plan
Opposition leaders have criticised the government’s announcement, arguing that a 30 day discount will not address the long term effects of fuel price increases since the removal of the subsidy.
African Democratic Congress presidential candidate Atiku Abubakar and his team have described the intervention as a temporary publicity measure introduced after years of rising living costs.
They argue that Nigerians have endured prolonged economic hardship and that a short term reduction at NNPC filling stations will not reverse the pressure households have faced since 2023.
Atiku has also promised to introduce a form of fuel subsidy if elected president, placing fuel pricing among the key economic differences between his position and Tinubu’s approach.
The Presidency, however, maintains that its latest measures are designed to offer immediate assistance without returning to a subsidy system that it considers too expensive to sustain.
Fuel prices become a major issue ahead of 2027
The announcement comes as Nigeria prepares for the presidential and National Assembly elections scheduled for January 16, 2027, according to the Independent National Electoral Commission.
With the election approaching, petrol prices and the broader cost of living are becoming important issues in the debate over the Tinubu administration’s economic record.
Critics question why stronger measures were not introduced earlier and argue that the timing of the announcement raises questions about the government’s political calculations. However, the administration has presented the intervention as a response to global oil market pressures and the need to protect vulnerable households.
Whether the move is driven primarily by economic concerns or electoral considerations remains a matter of political debate. What is clear is that fuel prices have become a major concern for voters, businesses and transport operators.
For millions of Nigerians, the immediate test will be whether the new arrangement makes petrol cheaper, reduces transport fares and eases the cost of food and other essential goods.
The monthly review of the proposed N1,350 landing cost ceiling, the publication of pricing figures and the implementation of the NNPC discount will be crucial in determining whether the intervention delivers lasting benefits.
As the 2027 election draws closer, the government faces growing pressure to show that its economic policies can improve everyday living conditions rather than simply announce temporary relief.
For Nigerians already struggling with rising expenses, the central question remains whether the promised relief will reach their pockets and what will happen when the 30 day discount ends.
