FG Proposes ₦1,350 Petrol Price Ceiling, Rules Out Subsidy Return

The Federal Government has unveiled plans to negotiate a ceiling of ₦1,350 per litre on the ex-gantry price of petrol as part of measures to reduce fluctuations in fuel prices across the country.

Naija News reports that the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at a press conference in Abuja on Thursday.

Oyedele explained that the proposed arrangement would help protect domestic petrol prices from sudden changes in international crude oil prices and foreign exchange rates.

He, however, acknowledge that the intervention would not completely eliminate the financial pressure faced by Nigeria households.

Speaking on the proposed measures, the Minister said the government was developing a price modulation mechanism aimed at ensuring greater stability in petrol prices.

“We are introducing price modulation. Pump prices should not have to follow every swing in global crude or exchange rate. The government is negotiating a ceiling of N1,350 a litre on the ex-gantry cost of petrol to keep pump prices stable,” he said.

He stated that where the actual cost rises above the ceiling, refiners and importers would bear the shortfall and recover it later when crude prices or exchange rates become favourable, without breaching the ceiling.

“This is neither a subsidy nor a price control; it is designed to smooth prices over time, rather than suppressing them,” Oyedele said.

“The reason is simple: ₦1,400 a litre today and tomorrow is better than ₦1,500 today and ₦1,300 tomorrow, because volatility itself adds to uncertainty and fuels go up sharply; they rarely come down as fast.”