FG Targets ₦1,350 Petrol Price Ceiling, Offers 30-Day Petrol Discount
By Reporter
ABUJA — The Federal Government has announced plans to negotiate a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol as part of fresh measures to stabilise fuel prices and cushion the impact of rising transportation costs on Nigerians.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday in Abuja while briefing journalists on the rising cost of petrol and renewed calls for the restoration of fuel subsidy.
Oyedele explained that the proposed price-modulation mechanism was designed to protect consumers from sharp increases in petrol prices caused by fluctuations in international crude oil prices and foreign exchange rates.
He, however, clarified that the proposed ₦1,350 ceiling does not mean petrol would immediately sell for that amount at filling stations across the country.
Rather, the arrangement would limit fluctuations in the cost of petrol at the ex-gantry or landing stage, helping to moderate changes in retail prices.
Under the proposed arrangement, refiners and fuel importers would initially absorb any costs exceeding the agreed ceiling and recover the shortfall when market conditions improve.
The minister said the mechanism was neither a return to fuel subsidy nor a form of price control, but an attempt to ensure greater stability in the petroleum market.
According to him, the government believes that relatively stable fuel prices would provide households and businesses with greater certainty in planning their expenditure.
FG Offers 30-Day Petrol Discount
As part of the intervention, the Federal Government also announced a temporary 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators to receive priority nationwide.
Oyedele said the initiative would initially run for 30 days, stressing that the government intended to make the product available at cost rather than reintroduce the suspended petrol subsidy regime.
The measure comes amid mounting concerns over the rising cost of living, with high petrol prices contributing to increased transportation fares and the cost of goods and services.
The government is also exploring forward sales of crude oil to domestic refiners to help them secure supplies at more predictable prices and reduce their exposure to fluctuations in the international oil market.
Other measures under consideration include expanding cash transfers to vulnerable households, providing cheaper credit to small businesses, accelerating the adoption of compressed natural gas for transportation and addressing illegal levies that increase the cost of moving goods.
The government is also considering measures to curb excessive profits by energy companies where consumers are exploited, with proceeds from potential enforcement actions to support transportation relief and targeted assistance.
Oyedele said the proposed ₦1,350 ceiling would be reviewed monthly, with the relevant figures published to promote transparency.
The government said the overall objective was to moderate fuel-price volatility and reduce the pressure on households and businesses without returning to a broad-based petrol subsidy.
However, the actual price motorists pay at filling stations will continue to depend on the implementation of the proposed mechanism and prevailing market conditions.
