According to Presidential spokesman Bayo Onanuga, the Federal Government is actively implementing strategies to reduce inflation rates down to single digits.
Onanuga said this while announcing additional measures that the government introduced to support Nigerians amid the global fuel crisis.
Daily Trust reports that the price of fuel has risen to an all-time high as a result of the blockade on Strait of Hormuz over the US-Iran war.
Earlier on Thursday, Minister of Finance, Taiwo Oyedele, announced that fuel would be sold at a discounted rate across NNPC filling stations for 30 days.
Although the minister made it clear that the move is not an attempt to reintroduce subsidy, many Nigerians, especially on social media, described it as an attempt to subsidize the product.
In his statement, Onanuga said, “The Nigerian National Petroleum Company (NNPC) agreed today to forgo its petrol retail profit margin and sell to Nigerians at cost to cushion the impact of global crude oil price shocks and volatility on vulnerable households.
“NNPC Retail, which already sells petrol at the lowest price in the market, will offer this new deal within the next 30 days. This means if NNPC’s landing cost is N1300, it will sell fuel to Nigerians, especially commercial vehicles, at the same price.
“The company’s discount gesture, backed by President Bola Ahmed Tinubu, was among the raft of measures the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced today.
“Oyedele said he hoped other marketers would take a cue from the NNPC, as the sharp rise in crude and petrol prices is not expected to last long.
“Oyedele was emphatic that NNPC agreeing to sell at a discount must not be misinterpreted as the restoration of petrol subsidy, which ended on May 29, 2023.”
Onanuga added that “The Federal Government is also working on a comprehensive package of fiscal measures to bring inflation down to single digits sustainably in the near term.”
What You Should Know
The Federal Government is introducing temporary relief measures to cushion Nigerians against the harsh effects of surging fuel prices driven by global crude oil market volatility.
- Positive Impact: Commercial vehicle operators and vulnerable households will benefit from discounted petrol prices at NNPC filling stations for the next 30 days as the company foregoes its retail profit margin.
- Potential Concerns: Despite government assurances that this is not a return to fuel subsidies, skepticism remains among citizens regarding the long-term sustainability and economic implications of these temporary price interventions.
