The Federal Government is planning to set a ceiling of ₦1,350 per litre on the ex-gantry cost of petrol as part of measures to reduce sudden changes in fuel prices and ease the pressure on Nigerians.
The Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, disclosed this on Thursday in Abuja while speaking at a press briefing on petrol prices and subsidy-related issues.
Oyedele said the proposed arrangement would prevent the cost of petrol from changing sharply whenever there are major movements in international crude oil prices or the foreign exchange market.
Under the plan, the government intends to negotiate a maximum ex-gantry or landing cost of ₦1,350 per litre. If the actual cost of obtaining the product rises above the agreed ceiling, refiners and importers would absorb the difference temporarily and recover it later when market conditions improve.
The minister said the arrangement would be reviewed every month, with adjustments made when necessary. The government also plans to publish the figures to allow Nigerians to follow the process.
Oyedele explained that the plan was designed to reduce the uncertainty caused by frequent increases and decreases in petrol prices. He said having a more stable price would help households and businesses plan their expenses better.
The minister, however, acknowledged that the measures would not completely remove the financial pressure currently facing households.
As part of the measures, the Federal Government also announced a 30-day discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPCL). Public transport operators nationwide will receive priority under the arrangement.
The government said the discount is not a return to petrol subsidy, but an arrangement to sell the product at cost during the initial 30-day period.
The development follows an earlier announcement by the NNPCL of a ₦66 discount for customers purchasing petrol through the NNPC Fuel App at its stations across the country.
Oyedele also disclosed that the government was working on forward crude sales to domestic refiners. The plan is expected to help local refiners secure crude and reduce their exposure to changes in the international market.
He added that efforts were also being made to increase crude oil production, which could help reduce pressure on petrol prices over time.
The Federal Government is further working with state governments on tax and levy reforms aimed at reducing additional costs affecting fuel and logistics.
Other measures being pursued include increased funding for cash transfers to vulnerable households, cheaper credit for small businesses and consumers, and faster expansion of compressed natural gas programmes in collaboration with state governments.
The new proposals come as political parties and candidates prepare for the 2027 elections, with renewed debate over whether petrol subsidies should return.
The African Democratic Congress presidential candidate, Atiku Abubakar, and the Nigeria Democratic Congress presidential candidate, Peter Obi, have both said they would restore the subsidy if elected in 2027.
You can get every of our news as soon as they drop on WhatsApp ...To get all news updates, Join our WhatsApp Group (Click Here)
