FG to negotiate ₦1,350 petrol price ceiling as global oil shock drives pump prices
The Nigerian government is negotiating a ₦1,350 per litre price ceiling for petrol to mitigate the impact of global oil price volatility on domestic consumers. Officials state this measure is intended to stabilize costs rather than act as a traditional fuel subsidy.
Why it matters
Fuel pricing is a highly sensitive economic issue in Nigeria that directly impacts inflation, transportation costs, and public stability.
The federal government says it is negotiating a ₦1,350 per litre ceiling on the ex-gantry or landing cost of petrol as part of measures to shield Nigerians from sharp fluctuations in fuel prices amid rising global oil prices.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday at a press briefing in Abuja on rising petroleum product prices and calls for the return of fuel subsidy.
Mr Oyedele said the proposed ceiling would prevent petrol prices from immediately reflecting every movement in global crude oil prices and the exchange rate.
“Pump prices should not have to follow every swing in global crude or the exchange rate,” he said.
Under the proposed arrangement, when the cost of petrol rises above the ceiling, refiners and importers would carry the shortfall and recover it later when crude prices or the exchange rate become more favourable.
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