Proposed petrol price ceiling threatens investment, supply- Oyebanji
Lagos, Oct. 2026 (TBL Africa) Mr Tunji Oyebanji, Chairman, OTL Africa Downstream Advisory Board, says the Federal Government’s proposed ceiling on petrol prices may undermine deregulation, erode investor confidence and threaten fuel supply.
Oyebanji said the requirement for refiners and importers to absorb costs above the proposed ceiling and recoup them later could distort market operations.
He disclosed this at a media interactive session on Friday in Lagos, ahead of the 20th OTL Africa Downstream Energy Week.
The Federal Government on Oct. 8 said it was negotiating a ceiling of N1,350 per litre on petrol ex-gantry or landing cost to moderate price fluctuations.
Under the proposed arrangement, refiners and importers would absorb costs above the ceiling and recover them later when crude oil prices or exchange-rate conditions improved.
Oyebanji questioned how long operators would be expected to bear the additional costs and the conditions for recovering them.
He warned that uncertainty could discourage investment and revive the supply challenges associated with regulated petroleum prices.
Oyebanji clarified that his comments reflected his personal views and did not represent the official position of OTL Africa Downstream Ltd.
Also speaking, Mr Ian Brown, a member of the OTL Africa Downstream Advisory Board, said fuel affordability depended not only on commodity prices but also on consumers’ purchasing power.
Brown explained that petroleum marketers relied heavily on transaction-based trade finance, requiring each transaction to generate sufficient revenue to repay lenders.
He warned that pricing arrangements that made transactions commercially unviable could limit access to financing and disrupt fuel supply.
Brown advocated targeted assistance to reduce transport costs rather than general fuel subsidies, which he said could disproportionately benefit wealthier motorists.
The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, described the proposal as price modulation rather than a subsidy or price control.
Oyedele said the ceiling would be reviewed monthly and adjusted when necessary, with the figures published to promote transparency.
The 20th OTL Africa Downstream Energy Week, with the theme, “Secure Energy, Shared Prosperity,” will hold in Lagos from Oct. 25 to Oct. 30.
