FG proposes ₦1,350 per litre price ceiling on petrol price
Abuja, Oct. 8, 2026 The Federal Government is proposing a ₦1,350 per litre price ceiling on petrol through a price-modulation mechanism.
Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, said this at a press briefing in Abuja on Thursday.
He said the arrangement was neither a subsidy nor a form of price control, but a system designed to keep petrol prices stable.
“This is neither a subsidy nor a price control; it is designed to smooth prices over time, rather than suppressing them.
“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.
Oyedele explained 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.
He said the objective was to prevent sharp swings in pump prices.
“The reason is simple: N1,400 a litre today and tomorrow is better than N1,500 today and N1,300 tomorrow, because volatility itself adds to uncertainty and fuels go up sharply; they rarely come down as fast,” he said.
Oyedele said the ceiling would be reviewed monthly, with adjustments made where necessary and the figures published for transparency.
He said the federal government was also introducing a 30-day discount on petrol dispensed by NNPC Limited, with priority given to public transporters nationwide, while insisting that the measure was not a 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. It’s not a subsidy; the government is saying we sell to you at a cost,” he said.
The minister said the government was also working on forward crude sales to domestic refiners, adding that rising production would help shield pump prices from volatility in the international market.
“We’re working with the states across the federation under the new tax laws. We are reigning in the taxes and levies that inflate fuel and logistics costs,” he said.
