Nigeria's FG Sets Petrol Price Ceiling to Stabilize Costs

The Federal Government of Nigeria is negotiating a price ceiling of N1,350 per litre for petrol at the ex-gantry or landing-cost level to mitigate sudden increases in pump prices. Finance Minister Taiwo Oyedele announced this during a press conference in Abuja, stating that the arrangement aims to make fuel prices more predictable for households and businesses.

The government plans to implement a price modulation system to prevent immediate price changes in response to global crude oil price fluctuations or foreign exchange rates. Under this proposal, refiners and importers would absorb costs exceeding the ceiling and recover the difference later.

Oyedele emphasized that this plan is not a fuel subsidy or price control but a mechanism to reduce price volatility. Additionally, the government intends to establish a national strategic fuel reserve to protect against energy supply disruptions and discourage market manipulation.

The initiative also includes promoting compressed natural gas (CNG) as an alternative fuel and considering an excess profit tax on energy operators to support vulnerable Nigerians.