Motorists, Small Businesses Say Petrol Discount Fails To Ease Energy Cost Burdens As End Nears

BY YUSUF BABALOLA, BUKOLA ARO-LAMBO, OLAMIDE OJUOKAIYE, SIVOWAKU ABIODUN, KINGSLEY OKOH AND DEBORAH BELLO, Lagos

With barely days to the October 31 expiration of the Federal Government’s N66-per-litre petrol discount, motorists, commercial transport operators and small business owners say the intervention has failed to deliver meaningful relief from the country’s high energy and living costs.

While some drivers who accessed discounted petrol at Nigerian National Petroleum Company Limited (NNPCL) outlets reported modest savings, many others said limited availability, long distances to participating stations and persistently high pump prices had eroded the benefits.

Commercial drivers were particularly critical of the scheme, insisting that the discount had neither reduced transportation fares nor improved their daily earnings. They argued that fuel remained one of the largest components of their operating costs, while platform commissions, vehicle maintenance, traffic and unstable trip volumes continued to pressure their incomes.

Small business owners also said the temporary reduction in petrol prices had done little to alleviate the broader burden of an unreliable electricity supply and the high cost of running generators, solar systems, and other alternative power sources.

The concerns come as consumers and operators await clarity on whether the discount will end as scheduled, be extended or be replaced with another measure. For many, the scheme’s imminent expiry has renewed questions about the reach, design and effectiveness of the government’s effort to cushion Nigerians from high fuel costs.

Prof. Tayo Bello said the discount had not produced the expected impact, arguing that neither petrol prices nor transportation fares had declined appreciably since its introduction.

“The government is deceiving themselves, and they are deceiving citizens. They announced that they are giving discount, but Nigerians have not seen the impact of the discount.

 

“There has been no reduction in transportation fare. One would expect that with the discount, maybe the price would come down. Instead, the price went up,” Bello said.

 

He noted that although the government, through the NNPCL, had incurred revenue losses from the N66-per-litre discount, Nigerians had yet to experience corresponding benefits.

 

Bello argued that the intervention would have been more meaningful if the reduction in fuel costs had translated into lower transportation fares and measurable relief for households and businesses.

 

A commercial minibus driver, Felix Ajao, also questioned the scheme’s accessibility, saying the distribution of NNPCL filling stations did not support widespread participation by motorists.

 

“I ply Iyana-Ipaja to Oshodi. Tell me how many NNPCL stations you can count. Who has time to burn fuel looking for an NNPCL station just to save N66? Many of us simply buy wherever we see fuel,” Ajao said.

 

He said the time and additional fuel required to locate participating stations could erode the savings motorists hoped to achieve through the programme.

 

For commercial transport operators in Ogun State, the discount has offered little relief because of limited access to functional NNPCL filling stations.

 

Korede Atanda, a tricycle operator plying the Oju-Ore–Atan route in Ota, said the absence of a fully operational NNPCL filling station along the Sango–Atan Expressway had restricted his ability to benefit from the scheme.

 

According to him, the only NNPCL station in the area was not operating at full capacity, making it difficult for motorists along the corridor to obtain discounted petrol.

 

Atanda said the intervention was intended to cushion the effects of high fuel costs on commercial drivers and commuters, but inadequate access to participating outlets had weakened its impact.

 

He explained that tricycle operators depended on the number of trips they completed daily to generate income, making fuel expenses a major determinant of their earnings.

 

The operator said that the availability of discounted petrol at accessible, fully functional filling stations was essential if the government wanted the initiative to deliver tangible savings for transport workers.

 

He added that without wider access, operators along the Sango–Atan corridor would continue to bear the burden of high petrol costs despite the government’s intervention.

 

Despite complaints about access and the scheme’s overall impact, some motorists said the discount had helped reduce their daily fuel expenditure.

 

An e-hailing driver, Azeez Kayode, said he saved N1,320 daily on the purchase of 20 litres of petrol through the NNPCL application.

 

“Since the inception of the discount scheme, I have been using about 20 litres of fuel daily, which previously cost me N27,200. However, with the Federal Government’s introduction of the discount, I now save about N1,320 every day,” Kayode said.

 

He explained that although the daily savings might appear modest, the cumulative amount could provide meaningful relief over a longer period.

 

“Although the amount may appear small on a daily basis, the savings become significant when calculated over a longer period. It translates to approximately N39,600 monthly and N481,800 annually, assuming the same level of fuel consumption and discount throughout the period,” he said.

 

Kayode’s experience highlights the potential benefit for motorists who can consistently purchase fuel under the scheme, although the actual savings depend on consumption levels and continued access to the discounted product.

 

Similarly, Ola Ajetumobi, a Lagos-based Uber driver, described the discount as a welcome development but said it had not resolved the wider problem of high operating costs confronting ride-hailing drivers.

 

“The discount was a welcome development because fuel is one of the biggest expenses we face as ride-hailing drivers. Before you calculate what you have earned in a day, you must first consider how much you spent on petrol, how much you will set aside for vehicle maintenance and what you owe the vehicle owner if you are driving a car under a rental or daily remittance arrangement,” Ajetumobi said.

 

He said the savings could be significant for drivers who regularly purchase large quantities of fuel.

 

“If the discount is N60 or N65 per litre, the savings can become meaningful for someone who buys fuel regularly. For a driver purchasing 40 litres, that translates to between N2,400 and N2,600 on a single fill-up. If a driver buys that quantity several times a week, the cumulative savings could help cover other running costs,” he said.

 

However, he cautioned that the benefit depended on how much fuel a driver purchased, how frequently the discount was applied and whether participating stations honoured the advertised price reduction.

 

“The problem is that we do not earn a fixed salary. Some days, there are enough trips to keep the car moving from morning until night. On other days, we spend hours waiting for requests, driving to pick up passengers or returning from distant destinations without a passenger. The fuel we burn during those periods is still our responsibility, but passengers are not necessarily paying us more because fuel has become expensive,” he said.

 

Ajetumobi said the discount should not be mistaken for an increase in drivers’ earnings, noting that platform commissions, traffic, vehicle repairs and the general cost of living continued to affect their take-home income.

 

“My concern is that people may hear about the discount and assume that drivers are now making more money. That is not necessarily true. The discount reduces one component of our expenses; it does not guarantee more trips, higher fares or better earnings,” he said.

 

He also identified accessibility as a major challenge, arguing that drivers who spent additional time and fuel searching for participating stations could lose part of the savings.

 

“Ultimately, the discount is useful, but it should be judged by the money drivers actually save, not simply by the amount announced. We need a system that makes the reduced price predictable and accessible. Otherwise, the policy may offer temporary relief without changing the difficult economics of ride-hailing,” he said.

 

A private car-hire operator, Tunde Adebayo, said the effectiveness of the discount depended on whether motorists could consistently access it without unnecessary complications.

 

“When the announcement came, I saw it as an opportunity to reduce the amount I spend on fuel during the month. As a ride-hailing driver, I cannot completely avoid buying petrol. Even when business is slow, I still need enough fuel to accept trips, move around the city and position myself where passenger demand is higher,” Adebayo said.

 

He said the availability of an offer on paper did not necessarily mean motorists would experience the benefits at filling stations.

 

“But an announcement and the experience at the filling station are two different things. What matters to a driver is whether the discount is available at the point of payment, whether the driver understands the conditions for accessing it and whether the process works consistently,” he said.

 

Adebayo called for clearer information on the application process, participating stations and procedures for resolving payment or technical problems.

 

He also warned that long queues could undermine the savings by preventing drivers from completing trips during peak business periods.

 

“Suppose a driver spends an additional 30 or 45 minutes at a filling station because many motorists are trying to access the same offer. That is time the driver could have used to complete trips. The discount may reduce the price per litre, but a lengthy queue can reduce the number of trips completed that day,” he said.

 

He urged the government and the NNPCL to improve communication with commercial drivers through transport unions, driver associations and ride-hailing platforms.

 

As the October 31 deadline approaches, Adebayo said the authorities should clarify whether the scheme would end as scheduled, be extended or be replaced with another intervention.

 

“A one-month discount can provide temporary breathing space, but drivers make financial commitments every day. We need to know whether the offer will end as announced, be extended or be replaced by another measure. Uncertainty makes it difficult to plan expenses,” he said.

 

He added that the initiative could provide genuine relief if the implementation matched the policy announcement.

 

“My view is that the idea is helpful, but implementation determines whether it becomes real relief. The best policy is not necessarily the one with the biggest headline discount; it is the one that people can access easily and consistently,” Adebayo said.

 

Emma Uche, an inDrive driver in Lagos, also said lower petrol prices did not automatically translate into higher take-home income for commercial drivers.

 

“For me, the most important thing about the discount is what remains after all the expenses have been deducted. People sometimes calculate a driver’s earnings by looking at the total fares collected in a day. But gross earnings are not the same as income. From that money, I must account for petrol, vehicle maintenance, tyres, engine oil, platform-related charges where applicable and other expenses,” Uche said.

 

He said that a driver who saved N2,500 on a particular fuel purchase would benefit from the reduction, but the savings should not be mistaken for a corresponding increase in daily income.

 

He explained that the actual benefit varied according to the quantity of petrol purchased and whether the driver could access the offer.

 

“For example, if I purchase 40 litres, a reduction of N60–N65 per litre would mean savings of N2,400–N2,600. That is a straightforward calculation. However, a driver who purchases only 20 litres would save half that amount. Someone who buys fuel at a non-participating station, or who cannot access the offer when needed, may receive little or no benefit,” he said.

 

Uche called for a transparent assessment of the programme based on the number of participating drivers, the volume of fuel sold under the scheme and the actual savings recorded.

 

“This is why I would like to see the policy evaluated using actual driver experiences. How many drivers used the discount? How many litres were purchased under the scheme? How much did each driver save over the month? Did the process require extra travel or waiting time? Those answers would tell us more than the announcement,” he said.

 

He added that lower fuel costs did not necessarily translate into reduced passenger fares because ride-hailing prices were influenced by demand, distance, traffic and platform pricing arrangements.

 

“If the discount is temporary, its impact will also be temporary unless something else changes. When the programme ends, the driver returns to paying the prevailing price. If fuel remains expensive and fares do not adequately reflect operating costs, the same financial pressure returns,” he said.

Uche, who operates his vehicle on both petrol and compressed natural gas (CNG), said the discount should be viewed as a short-term intervention rather than a complete solution to the challenges confronting commercial drivers.

He called for a broader discussion on transport costs, vehicle financing, maintenance, the cost of living, and how ride-hailing platforms calculate fares.

However, a motorist, Kolade John, expressed disappointment over the NNPC petrol discount, saying it had brought no meaningful benefits despite the reduction.

“No benefits whatsoever, the prices are still very much on the high side even with the so-called discount,” the motorist said, adding that the initiative had offered no relief amid rising petrol prices.

“No relief at all. It’s quite frustrating and sad that the price of petrol has gone so high, so therefore, no form of relief has been experienced,” John added.

He called on the government to drastically reduce petrol prices, arguing that the current cost remained beyond the reach of many Nigerians.

“Discount or no discount, they should drastically drop the price. N1,350 is too much. How much are we earning to always buy petrol at such a price?” stressing that the discount had done little to ease the financial burden on consumers.

Beyond the transport sector, small business owners said the high cost of fuel and unreliable electricity supply continued to erode their profit margins, limiting the extent to which the discount could ease their operating expenses.

Funmilayo Abikeade, who operates a cold-room business in the Ajuwon area of Ogun State, told LEADERSHIP that rising fuel costs had become increasingly worrying and unpredictable.

She lamented that erratic electricity supply was adding to the cost of running her business, putting pressure on sales margins and making it more difficult to plan expenditure.

Abikeade’s experience reflects the challenges facing businesses that rely on generators to preserve goods and maintain operations when the public power supply is inadequate.

Fatai Adebisi, a barber and small business operator, said he was considering relocating his shop to an area with better electricity supply to reduce his dependence on alternative power sources.

He warned that rising fuel and electricity costs were forcing some businesses to close or operate at reduced capacity, adding that operators who relied on generators and solar inverters remained exposed to high energy costs.

For such businesses, a temporary reduction in petrol prices may ease some costs, but it does not necessarily resolve the wider challenges of unreliable power supply and the expense of maintaining alternative energy systems.

Another motorist, Michael Ajewole, said some drivers spent as much as N60,000 daily on fuel for their transport vehicles, leaving them with little room to save or maintain a stable income to meet household needs.

He said the burden of fuel expenditure had made it increasingly difficult for transport operators to balance business expenses with family responsibilities.

The challenges of accessing affordable energy have also extended to motorists who have switched to CNG in an effort to reduce fuel expenses.

A dispatch rider, Idris Yekeen, said he converted one of his motorcycles to CNG to cut operating costs but now spent more time queuing to refuel.

Yekeen said the limited number of CNG stations in his area meant he sometimes travelled from Ikotun to Agidingbi or Agege to obtain gas.

He lamented that the time spent travelling to refuelling stations and waiting in queues had introduced another operational challenge, particularly for dispatch riders whose earnings depend on completing deliveries promptly.

He said motorists who switched to CNG primarily to reduce energy costs could lose valuable working hours when refuelling infrastructure was inadequate.

Similarly, a tricycle operator, Bayo Oladimeji, said long queues had become part of his daily routine because motorists often converged on a few outlets where they were certain they could obtain gas.

He added that dispensing sometimes stopped while fresh supplies were being discharged into storage tanks, further extending waiting times.

The situation, he said, underscored the need to expand CNG infrastructure alongside efforts to encourage motorists to adopt alternative fuels.