MEMAN Rejects FG's ₦1,350 Petrol Price Ceiling Proposal

The Major Energies Marketers Association of Nigeria (MEMAN) has expressed opposition to the Federal Government's proposed petrol price ceiling of ₦1,350 per litre, warning that arbitrary price limits could distort competition and fail to resolve ongoing supply and distribution challenges. MEMAN's position was disclosed during its third-quarter press engagement held virtually on Thursday in partnership with S&P Global.

The association argues for transparent, market-driven pricing and improved logistics, stating that sustainable fuel price stability relies on addressing supply bottlenecks rather than imposing government-determined limits. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, mentioned that the government is negotiating a ceiling on petrol's ex-gantry cost, which would require refiners and importers to absorb costs exceeding this limit initially.

The proposal aims to moderate price fluctuations without reinstating the petrol subsidy removed in May 2023. MEMAN emphasized that effective reimbursement arrangements and predictable pricing are essential for the success of this initiative.