Nigeria's Government Sets N1,350 Petrol Price Ceiling

The Federal Government of Nigeria has proposed a price-modulation mechanism for petrol, establishing a ceiling of N1,350 per litre on the ex-gantry or landing cost. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced this initiative during a press briefing in Abuja on petrol prices and subsidy-related issues.

The plan is intended to stabilize petrol prices, clarifying that it is neither a subsidy nor a price control. Under this arrangement, refineries and importers will absorb costs exceeding the ceiling and recover the difference later.

Additionally, the government plans to implement a forward sale of crude oil to domestic refineries, allowing them to plan operations with greater price certainty. For instance, refiners may be offered crude at $80 per barrel for the next six months, which aims to shield pump prices from international market volatility.

Oyedele emphasized that these measures are designed to be sustainable and beneficial for both refiners and consumers.