FG Targets ₦1,350/Litre Ceiling On Petrol Landing Cost
By Tams Jonah, ABUJA – The Federal Government has announced plans to introduce a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol as part of measures to cushion Nigerians from rising fuel prices and stabilise the downstream petroleum market.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a briefing on fuel prices and subsidy-related issues in Abuja.
Oyedele said the proposed arrangement, described as price modulation, is intended to prevent fluctuations in international crude oil prices and the foreign exchange market from immediately translating into sharp increases in petrol prices.
He stressed that the proposed ₦1,350 ceiling does not mean petrol will be sold at ₦1,350 per litre at filling stations.
According to him, the government is negotiating the ceiling to provide greater stability in petrol pricing, with the figure expected to be reviewed monthly.
“Pump prices should not have to follow every swing in global crude or the exchange rate,” Oyedele said, explaining that where the actual cost rises above the ceiling, refiners and importers would initially absorb the shortfall and recover it when market conditions improve.
The minister said the mechanism was neither a return to petrol subsidy nor price control, but an arrangement designed to smooth out price fluctuations and provide greater certainty for consumers and businesses.
The announcement comes alongside other measures, including a 30-day discount on petrol sold through NNPC Limited stations, with priority given to public transport operators nationwide. The government said the temporary intervention was aimed at reducing the immediate impact of high fuel and transportation costs on Nigerians.
The government is also considering forward sales of crude oil to domestic refineries and other measures aimed at strengthening domestic supply and reducing the effect of global market volatility on local petrol prices.
