Nigerian Government Sets ₦1,350 Petrol Price Ceiling

The Nigerian Government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol as part of a proposed price-modulation arrangement. This initiative aims to protect Nigerians from sharp fluctuations in global crude prices and exchange rates.

Mr. Taiwo Oyedele, the Minister of Finance and coordinating Minister of the Economy, explained that this ceiling would be reviewed monthly to ensure transparency. The government also announced a 30-day margin discount on petrol at NNPC Limited stations, prioritizing public transporters.

Additionally, the government is considering forward sales of crude to domestic refineries to stabilize pump prices. Oyedele noted that existing measures have not fully alleviated pressure on households and businesses, prompting increased funding for cash transfers to vulnerable households and subsidized credit for small businesses.

The government rejected calls for a blanket fuel subsidy, estimating that reinstating it would cost over ₦20 trillion annually. The current approach focuses on targeted relief without compromising fiscal stability.