The Federal Government says it will reduce the price of petrol sold by the Nigerian National Petroleum Company Limited (NNPCL) for the next 30 days to ease the cost of public transportation nationwide.

This was announced on Thursday by Taiwo Oyedele, the minister of finance and coordinating of the economy in a press conference in Abuja.

“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance, with priority for public transporters nationwide. So it’s not a subsidy, the government is just saying we sell to you at cost,” he said. 

According to Mr Oyedele, the forward sales of crude to domestic refineries as production rises and previously committed crude is freed up.

“These will shield pump prices from volatility in the global markets. So the idea we have is an idea that is sustainable. You can sell your crude forward,” he said.

He stated that the government would sell petroleum to refiners in the next six months at $80 per barrel.

“That preserves your budgets, provides certainty to the refiners and price stability to the consumer,” he added.