Federal Government Caps Petrol Landing Cost at N1,350

The Federal Government has announced a ceiling of N1,350 per litre on the ex-gantry or landing cost of Premium Motor Spirit (petrol) to maintain price stability. This announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a press briefing on petrol prices and subsidy-related issues in Abuja.

Oyedele clarified that this arrangement is neither a subsidy nor a price control but a price modulation mechanism. Under this system, refineries and importers will absorb any costs exceeding the ceiling and recover the difference later.

The government aims to shield petrol prices from sharp fluctuations in the international market while providing certainty for operators in the downstream petroleum sector. Additionally, Oyedele announced plans for the forward sale of crude oil to domestic refineries to mitigate the impact of international crude price volatility.

This measure is expected to enhance stability in petrol prices and support local refiners in planning their operations.