FG negotiates ₦1,350/litre petrol price ceiling to shield Nigerians from global oil shocks
The federal government is negotiating a ₦1,350 per litre ceiling on petrol's ex-gantry or landing cost to buffer Nigerians from sharp fuel price swings amid rising global oil prices, Finance Minister Taiwo Oyedele announced at an Abuja press briefing today. Under this measure, when petrol costs exceed ₦1,350/litre, refiners and importers would absorb the shortfall and recover it later when crude prices or exchange rates improve—with monthly reviews and published figures for transparency. Oyedele stressed this is neither a subsidy nor price control but aims to smooth volatility, noting '₦1,400 a litre today and ₦1,400 tomorrow is better than ₦1,500 today and ₦1,300 tomorrow' because price swings increase uncertainty and costs for households and businesses.
This comes as Brent crude trades above $100 per barrel (up nearly 50% from pre-Gulf conflict levels) following reduced oil flows through the Strait of Hormuz. Nigeria's petrol price has risen from ~₦830/litre pre-conflict to ~₦1,400/litre currently, intensifying cost-of-living pressures after the 2023 subsidy removal and renewing subsidy debates ahead of the 2027 elections. The ceiling is one of several measures being weighed, including a 30-day margin discount on NNPC petrol for public transporters, forward crude sales to domestic refineries, removal of illegal road taxes, CNG rollout expansion, and a National Strategic Fuel Reserve to release products during global disruptions.
Would you prefer stable petrol prices around ₦1,400/litre despite global shocks, or accept temporary spikes hoping for quicker relief when markets ease—and how would either scenario affect your monthly transport or business logistics costs?