Petrol: NNPC restricts discount sales, may forgo N4.6bn

Motorists seeking to benefit from the Federal Government’s N66-per-litre petrol discount must download the Nigerian National Petroleum Company Limited’s mobile application and pay digitally, as the reduction is not automatically available to customers at filling stations, Saturday PUNCH has learnt.

Checks at NNPC retail outlets in Abuja on Friday revealed that petrol was still being sold at N1,405 per litre to customers paying directly at the pumps, while those using the company’s mobile application paid N1,339 per litre.

The findings indicate that the government’s petrol price relief initiative, intended to cushion the impact of rising fuel costs on Nigerians, particularly commercial transport operators, remains tied to a digital payment arrangement.

The development comes as NNPC extended its N66-per-litre discount until October 31, while the company could forgo an estimated N4.62bn in gross revenue if all its average monthly petrol sales qualify for the reduction.

At the NNPC mega station along Obasanjo Way, a fuel attendant confirmed that customers could only access the discount through the company’s application.

“You can only qualify for the N66 discount if you download the app. You would also make payment via the application. So, it is not yet directly when you come to our pump stations.

“You just download the app and follow the procedure. We are still selling at N1,405, but in the app it is N1,339,” the attendant, who spoke on condition of anonymity, said.

Our correspondent observed similar pricing arrangements at other NNPC retail stations across the Federal Capital Territory.

The arrangement means motorists who purchase petrol directly at the pumps without using the application do not automatically enjoy the discount.

It also raises questions about how easily commercial transport operators and other motorists unfamiliar with the digital platform can access the relief.

The discount was initially introduced on October 1 to commemorate Nigeria’s 66th Independence Anniversary.

However, following an announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Thursday, NNPC extended the promotion until October 31.

The government said the initiative was intended to provide temporary relief amid rising international crude oil prices linked to the conflict in the Middle East.

NNPC may forgo N4.62bn

Meanwhile, NNPC could forgo an estimated N4.62bn in gross revenue under the discount arrangement, based on the company’s reported monthly petrol sales volume of 70 million litres.

Oyedele, speaking on Channels Television’s Politics Today, said NNPC Retail supplied about 70 million litres of petrol monthly.

Using the prevailing pump price of N1,405 per litre, the volume would generate approximately N98.35bn in gross sales revenue.

At the discounted price of N1,339 per litre, the same volume would generate N93.73bn, representing a difference of N4.62bn.

The estimate assumes that all 70 million litres qualify for the discount. The actual revenue reduction would depend on the volume purchased through the application and the company’s sales during the promotional period.

The figure does not necessarily represent a loss of profit, as NNPC maintains that the discount is being funded from its retail margin.

Oyedele explained that the initiative was originally conceived as a promotional offer to encourage customers to adopt the company’s digital platform.

“On 1st of October, they said Nigeria is turning 66. They did an app. They wanted people to adopt it. Promo. They said, if you come and buy fuel and you download our app, you get 66 Naira less,” he said.

The minister disclosed that he contacted NNPC to establish whether the reduction could affect its financial position.

“So I called them and said, this is your 66 Naira. Are you sure it’s not over-recovering that you tell me that you’re taking money from a digital account? They said, no.

“I said, okay. Now, since we are doing this, why don’t you go and calculate how much is your profit? And limit that discount to your profit.

• Atiku accuses Tinubu of copying fuel subsidy plan
• SDP, OK movement reject Tinubu’s petrol discount
• Kenneth Okonkwo hails Atiku, defends subsidy plan

“So, that it’s not costing you anything. And when I asked them to send me the numbers, I saw their volume. They are only supplying the market about 70 million litres a month,” Oyedele stated.

According to the minister, NNPC Retail’s relatively small share of the petrol market makes the promotion manageable and could help the company attract more customers.

He insisted that the initiative was a commercial discount rather than a government-funded subsidy.

“The point is that what NNPC is selling at after the discount is still market-reflective. Because they told me they are buying all of it from Dangote. Dangote is not giving a subsidy.

“So when they buy at N1,325 from Dangote, they add their own cost to it, their profit. And they sell. For this period, they are taking out only their own profit element. That’s why we call it margin discount. That’s number one point. It is not a subsidy,” he said.

Oyedele added that the government had encouraged NNPC to prioritise public transport operators and limit the initial intervention to 30 days, subject to a review of international oil prices.

FG rules out subsidy return

The minister also ruled out a return to the previous petrol subsidy regime, warning that restoring broad price support would impose a substantial burden on public finances.

According to him, reversing the subsidy removal could cost the Federal Government approximately N20tn annually, while reducing petrol prices to N500 per litre could require about N16tn yearly.

“If you take the subsidy back to where it was before the reform, it will cost about N20tn a year. It doesn’t matter what you call it, whether it’s production or not,” he said.

Oyedele argued that such expenditure would compete with funding for salaries, pensions, education, healthcare and infrastructure.

He also said the government could not currently supply all the crude oil required by the Dangote refinery because Nigeria’s production was shared among the government, joint-venture partners and other contractual interests.

The minister maintained that the government’s priority was to preserve market-based pricing while improving domestic supply and reducing dependence on imported petroleum products.

NNPC extends discount

In a statement issued on Friday by its Chief Corporate Communications Officer, Andy Odeh, NNPC confirmed that the N66-per-litre discount would continue until October 31 at its retail outlets nationwide.

The company said the extension followed the Federal Government’s renewed efforts to ease the impact of rising fuel prices on households, businesses and the wider economy.

“Following the statement by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on 8 October 2026, NNPC Limited reiterates its commitment to working with the government and stakeholders to cushion the impact of rising fuel prices on households, businesses and the wider economy.

“Before the announcement, NNPC Limited had introduced a N66 sales discount on 1 October 2026 to commemorate Nigeria’s 66th Independence Anniversary. This will now continue until 31 October 2026 across NNPC Retail stations nationwide,” the statement read.

NNPC maintained that the discount was a customer relief initiative and did not represent the reintroduction of petrol subsidy.

It also clarified that the intervention would not establish a uniform national pump price or alter the market-based pricing framework governing petroleum products.

“We recognise that higher petrol prices affect everyday life, from the cost of commuting to the expenses of running a business.

“We understand the strain on families and livelihoods, and this discount is intended to provide direct relief to customers during this difficult period,” the company stated.

NNPC said it remained committed to maintaining reliable petroleum product supplies while operating on a commercially responsible basis.

“Our priority is to provide practical support while maintaining commercially responsible operations. We will continue to explain the scope and duration of our customer initiatives clearly, so Nigerians can make informed purchasing decisions,” it added.

The company urged Nigerians to disregard suggestions that the discount amounted to a restoration of the subsidy regime, assuring motorists of continued supply and responsible customer service.