Federal Government Sets ₦1,350 Petrol Price Ceiling

The Federal Government has announced a new price-modulation mechanism for petrol, establishing a ceiling of ₦1,350 per litre on the ex-gantry or landing cost. 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 mechanism aims to stabilize petrol prices and is neither a subsidy nor a form of price control. Under this arrangement, any costs exceeding the ceiling will be absorbed by refineries and importers, who will recover the shortfall later.

Additionally, the government plans to implement forward sales of crude oil to domestic refineries to protect petrol prices from international market volatility. This strategy will allow refiners to plan their operations more effectively and provide price stability to consumers, with examples given of selling crude at a fixed price for future months.