Oil marketers say FG’s petrol discount excludes them, seek 60-day extension

Oil marketers have called on the Federal Government to extend its 30-day petrol discount window to 60 days and include independent marketers, arguing that the current arrangement may limit its reach and benefits for consumers.

In separate conversations with Nairametrics, representatives of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and another independent marketer raised concerns about the policy’s implementation, distribution and long-term impact.

The government recently announced a discount on petrol sold at Nigerian National Petroleum Company (NNPC) retail outlets, with priority given to public transporters nationwide.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the arrangement was not a subsidy but a plan to sell petrol at cost, funded by NNPC’s retail margins rather than the Federal Government budget or Federation Account.

Oil Marketers Seek 60-Day Petrol Discount

IPMAN National Publicity Secretary, Chinedu Ukadike, questioned how the policy would benefit consumers in communities where NNPC filling stations have limited coverage. He called for independent marketers to be included and the discount period extended to allow enough time to distribute products nationwide.

• “Independent oil marketers have over 90% coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it? But, its government policies, we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” Ukadike said.
• “And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Another independent marketer, Philp Bulus, welcomed the intervention but stressed the need for transparency to ensure consumers benefit from the reduction.

• “As an independent oil marketer, I see the NNPC 30-day discount window as a welcome intervention, especially at a time when the cost of petrol is putting pressure on households, transport operators and businesses. Any measure that can reduce the cost of petrol, even temporarily, is worth considering because fuel prices have a direct impact on transportation, food distribution and the general cost of living,” Bulus said.

The marketers’ concerns come amid continued volatility in the downstream petroleum sector, with global crude oil prices rising amid the Middle East conflict involving the United States, Iran and Israel.

Marketers demand fair access to petrol discount

Bulus said the effect of the discount on independent marketers would depend on how the arrangement is implemented. If NNPC sells discounted petrol directly to consumers through selected outlets, independent operators could face pressure to lower their pump prices to remain competitive, even if this reduces their margins and affects their operating costs.

• “However, the key issue is the structure and implementation of the discount. We need to understand how much of a reduction will be offered, how the benefit will be passed on to consumers, and whether independent marketers will have fair access to the arrangement,” Bulus said.

He added that if access were restricted to certain buyers or distribution channels, the policy’s impact could be limited, making transparency essential.

• “We must recognise that independent marketers are an important part of Nigeria’s downstream petroleum distribution network. They operate filling stations across different communities and help ensure that products reach consumers. Any intervention that affects the market should therefore take their role into account,” he said.
• Bulus argued that allowing independent marketers to access discounted products under transparent and equitable conditions could reduce procurement costs and enable them to pass savings on to consumers.

He also called on the government and NNPC to clarify participation requirements, eligibility criteria and the pricing mechanism to avoid creating an uneven playing field. According to him, the intervention should lower prices for consumers without unnecessarily disadvantaging independent operators.

Ukadike reiterated his call for a 60-day extension, saying a longer period would allow more marketers to participate and distribute products across the country.

Bulus added that the impact on consumers would depend on the discount size, the volume of petrol covered, the number of beneficiaries and how effectively savings translate into lower retail prices.

What you should know

Former Vice President Atiku Abubakar had earlier criticised the Federal Government’s proposed 30-day fuel discount at NNPC stations, arguing that the temporary measure would not provide lasting relief from high fuel, transport and food costs.

• Atiku, a presidential candidate of the African Democratic Congress (ADC), said the intervention could not address the wider economic hardship Nigerians had faced since the removal of the petrol subsidy.
• He questioned what would happen after the 30-day period, arguing that Nigerians could return to the same fuel prices, transport fares and food costs once the intervention ended.

Atiku also questioned the absence of details on how much motorists would save per litre and whether any savings enjoyed by transport operators would be passed on to passengers through lower fares.