By Milcah Tanimu

The Nigerian National Petroleum Corporation Limited (NNPCL) has announced a significant change in its approach to managing fuel prices. Instead of providing direct subsidies, NNPCL will now handle the financial gap, or “shortfall financing,” between production costs and the reduced selling price mandated by the government.

Under the new policy, NNPCL will continue to sell fuel at lower prices as directed by the government but will absorb the difference internally, rather than receiving direct financial assistance to lower consumer prices. This shift means that while consumers will still benefit from reduced fuel prices, NNPCL will take on the financial burden of this pricing adjustment.