NNPCL Raises Petrol Pump Price To N1,405 As Discount Controversy Deepens

The Nigerian National Petroleum Company Limited has increased its petrol pump price to N1,405 per litre from N1,370, reversing a recent reduction amid ongoing controversy over the Federal Government’s disputed fuel discount scheme.

Checks at NNPCL filling stations on Friday showed the new price had taken effect after pump attendants were informed of the adjustment on Thursday, according to reports. The increase represents a N35 per litre rise, although the state-owned oil company has not publicly explained the reason for the adjustment.

The latest hike comes just days after NNPCL had reduced its pump price to N1,370 per litre on Monday, following an earlier increase to N1,405. The reversal has deepened uncertainty over petrol pricing and raised questions about the implementation of the government’s announced discount.

The controversy stems from the Federal Government’s announcement of a 30-day petrol discount at NNPCL retail stations, intended to cushion the impact of rising global crude oil prices. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the measure was not a return to subsidy but a temporary relief initiative.

NNPCL, in a statement, insisted the discount was “a customer relief initiative and does not represent the reintroduction of petroleum subsidy.” The company said the discount, introduced on October 1 to mark Nigeria’s 66th Independence Anniversary, would continue until October 31 across its retail stations nationwide.

However, the discount was only accessible to customers who downloaded the NNPCL fuel app and paid digitally, with the effective price set at N1,339 per litre. The Chief Corporate Communications Officer of NNPC, Andy Odeh, said the pump price at NNPCL retail stations remained N1,405 per litre, but app users received the N66 per litre discount.

The arrangement has drawn criticism from opposition figures and economists. Former Vice President Atiku Abubakar accused the government of turning the discount into a “political spectacle,” questioning whether the NNPCL board approved the decision and how the cost would be absorbed . The Nigeria Labour Congress described the N66 discount as “miserly” and the app requirement as “restrictive and diversionary”.

Economists warned that the temporary nature of the intervention could encourage hoarding and create scarcity after the discount expires. Dr Chijioke Ekechukwu, Vice President of the Abuja Chamber of Commerce and Industry, said limiting the discount to 30 days “may create an opportunity for petroleum dealers to buy and hoard products during the period, only to sell them after the discount expires”.

The latest price adjustment also comes as Oyedele announced a proposed fixed petrol gantry price of N1,375 per litre ahead of the January 16, 2027, presidential election. A gantry price refers to the price at which petroleum products are sold at depots to marketers before transportation and other costs are added.

The relationship between the proposed gantry price and NNPCL’s retail price remains unclear, as the company has not explained its latest adjustment. Motorists now face renewed uncertainty over fuel costs, with the gap between government announcements and actual pump prices continuing to widen.