FG proposes N1,350 ceiling for petrol ex-gantry price

The Federal Government has proposed a N1,350 per litre ceiling on the ex-gantry price of petrol as part of measures to reduce sudden changes in fuel prices.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the proposal in Abuja on Thursday while speaking about petrol prices and subsidy-related issues.

The government says the plan is designed to protect consumers from sharp increases caused by changes in global crude oil prices and foreign exchange rates.

However, Oyedele acknowledged that the proposed measures would not completely remove the financial pressure facing Nigerian households.

FG plans N1,350 petrol price ceiling

Under the proposed arrangement, the government would negotiate a maximum ex-gantry price of N1,350 per litre for petrol.

The ex-gantry price refers to the cost of petrol before additional costs are added along the distribution chain.

Oyedele said the policy would introduce what he described as price modulation.

The goal is to prevent pump prices from immediately following every movement in international crude prices or exchange rates.

“We are introducing price modulation. Pump prices should not have to follow every swing in global crude or exchange rate,” Oyedele said.

He added that the government was negotiating a N1,350 ceiling to help keep petrol prices more stable.

How the proposed fuel price ceiling will work

The minister explained that the arrangement would allow refiners and importers to absorb temporary increases in costs.

If the actual cost of petrol rises above the proposed ceiling, refiners and importers would carry the difference initially.

They could then recover the shortfall when crude oil prices or exchange rates become more favourable.

According to Oyedele, the approach would reduce sudden movements in petrol prices.

He stressed that the proposal was not intended to permanently suppress fuel prices.

“This is neither a subsidy nor a price control,” the minister said.

Instead, he described it as a mechanism for smoothing petrol prices over time.

Government wants to reduce petrol price volatility

Oyedele said the government was more concerned about sudden price changes than daily fluctuations in the market.

He explained that a relatively stable price would give households and businesses greater certainty.

The minister compared a stable price of N1,400 per litre with a situation where petrol could rise to N1,500 before falling to N1,300.

According to him, consumers are often hit harder when prices rise quickly but take longer to fall.

The proposed N1,350 petrol ceiling is therefore intended to reduce that volatility.

Petrol ceiling to be reviewed monthly

The proposed ceiling would not remain fixed permanently.

Oyedele said the government would review the figure every month.

Adjustments could be made when market conditions change.

He also said the figures would be published to improve transparency.

This would allow consumers and businesses to track changes in the government’s petrol pricing framework.

FG announces 30-day NNPC petrol discount

In addition to the proposed price ceiling, the government announced a 30-day discount on petrol sold by NNPC Limited.

The discount will initially give priority to public transport operators across the country.

Oyedele said the government would provide the discount for an initial period of 30 days.

He maintained that the measure should not be regarded as a subsidy.

According to him, the government is supporting the sale of petrol at a lower cost without returning to the previous subsidy arrangement.

Government plans forward crude sales

The Federal Government is also working on a system for forward crude sales to domestic refiners.

Oyedele said the move could help domestic refiners plan their operations and reduce their exposure to sudden changes in international crude prices.

The government also expects increased domestic oil production to help reduce fuel price volatility.

Higher production could provide more crude for local refining and reduce some of the pressure created by international market movements.

FG targets taxes and logistics costs

The minister said the government was also working with state governments under the new tax laws.

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The aim is to reduce taxes and levies that increase the cost of fuel distribution and logistics.

Lower logistics costs could help reduce some of the pressure that eventually reaches consumers through petrol prices.

The government is also looking at other measures aimed at easing the impact of rising living costs.

Cash transfers and CNG support planned

According to Oyedele, the Federal Government plans to increase funding for cash transfers to vulnerable households.

The government is also subsidising credit for small businesses and consumers.

In addition, it is working with state governments to accelerate the rollout of compressed natural gas (CNG).

CNG has been promoted as an alternative fuel that could help reduce transportation costs for Nigerians.

The latest measures form part of the government’s broader response to economic pressure on households and businesses.

Fuel subsidy debate returns ahead of 2027

The proposed petrol pricing measures come amid renewed debate over fuel subsidies in Nigeria.

The issue has also become part of discussions ahead of the 2027 general election.

According to the report, African Democratic Congress presidential candidate Atiku Abubakar and Labour Party presidential candidate Peter Obi have both spoken about restoring fuel subsidies if elected.

The debate reflects the wider disagreement over how Nigeria should manage petrol prices while reducing the financial burden on households.

What the N1,350 petrol ceiling means for Nigerians

The proposed N1,350 ex-gantry price ceiling is aimed at making petrol prices more predictable.

However, the proposal does not mean that petrol will automatically sell for N1,350 per litre at filling stations.

The ex-gantry price is only one component of the final pump price.

Other costs can include transportation, distribution and retail margins.

Therefore, the impact on the final price paid by motorists will depend on how the proposed framework is implemented.

For now, the government says the main objective is to reduce sudden petrol price increases while giving refiners, importers and consumers greater certainty.

The proposed monthly reviews will also determine how the ceiling responds to changes in crude oil prices and exchange rates.