Nigeria's Finance Minister Introduces Petrol Price Modulation

The Federal Government of Nigeria, through Finance Minister and Coordinating Minister of the Economy Mr. Taiwo Oyedele, clarified that its approach to managing rising petrol costs is price modulation rather than a return to fuel subsidies. During a press briefing in Abuja and on Channels Television’s Politics Today, Oyedele explained that the government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to maintain price stability amidst global crude oil price shocks.

He emphasized that this mechanism will not be misconstrued as a subsidy or price control, aiming instead to smoothen price fluctuations over time. The ceiling will be reviewed monthly for transparency.

Additionally, plans for forward sales of crude oil to domestic refineries were announced to provide price certainty. Oyedele reiterated that these measures do not restore a blanket subsidy, which he argued would cause longer-term harm for short-term relief.