THE Federal Government has proposed a N1,350-per-litre ceiling on the ex-gantry or landing cost of petrol to stabilise fuel prices in Nigeria.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing on petrol prices and subsidy-related measures in Abuja.
Oyedele said the proposed arrangement, which the government described as price modulation, would prevent sharp fluctuations in petrol prices without restoring the former blanket fuel subsidy regime.
“We are introducing price modulation. The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to keep the price stable. When costs rise above the ceiling, refineries and importers will carry the shortfall and recover it later. This is neither a subsidy nor price control,” he said.
Under the arrangement, refiners and petrol importers would absorb costs above the agreed ceiling and recover the difference when market conditions, including crude oil prices and the exchange rate, become more favourable.
Oyedele said the ceiling would be reviewed monthly, with the figures published to promote transparency.
The minister also announced a 30-day discount on petrol sold at Nigerian National Petroleum Company Limited filling stations, with public transport operators to receive priority.
He said the measure was a margin discount and should not be interpreted as a return to fuel subsidy.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance with priority for public transporters nationwide. So, it’s not a subsidy; the government is just saying we sell to you at cost,” Oyedele said.
The announcement comes amid differences in petrol pump prices across the country.
The latest reported NNPC prices put petrol at N1,355 per litre in Lagos and Rivers states, while Abuja is listed at N1,370 per litre.
Oyedele also disclosed that the Federal Government was planning to introduce forward sales of crude oil to domestic refineries to reduce the impact of fluctuations in international crude prices on petrol costs.
Under the proposed arrangement, refiners could secure crude at an agreed price for a specified period, allowing them to plan production and maintain greater certainty over operating costs.
Oyedele gave an example of selling crude to refiners at $80 per barrel for six months.
“That preserves your budgets, provides certainty to the refiners and price stability to the consumer,” he said.
He said increased domestic crude production and the release of previously committed crude would also help shield pump prices from volatility in the international market.
The Federal Government said it was also implementing other measures to ease the impact of higher petrol prices.
These include increased cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and an accelerated rollout of compressed natural gas vehicles.
Oyedele further disclosed that the government had granted a full waiver of taxes and duties on petrol, which he valued at more than N3.3 trillion between January and September 30, 2026.
He, however, maintained that the measures did not amount to a return to blanket petrol subsidy.
“To be perfectly clear, none of these measures restores a blanket subsidy. To do so would amount to creating longer-term harm for a short-term cure,” he said.
According to the minister, the government’s approach is to target assistance at vulnerable Nigerians while avoiding measures that could undermine the wider economy.
The proposed N1,350 ceiling and the 30-day NNPC discount are expected to provide short-term relief to consumers as the government seeks to manage the impact of volatile crude prices and exchange-rate movements on the domestic petrol market.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.