The Federal Government is negotiating a petrol price ceiling of ₦1,350 per litre on landing costs to reduce sudden fuel price increases and ease pressure on Nigerian households and businesses.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the proposal during a briefing in Abuja on Thursday, October 8, 2026. He said the measure would help stabilise petrol prices amid rising global crude oil prices and exchange rate fluctuations.
According to the minister, the government wants to prevent changes in international oil prices from immediately triggering sharp increases in domestic fuel costs.
However, the proposed ceiling applies to petrol’s landing or ex-gantry cost, not necessarily the final price motorists pay at filling stations. The government is still negotiating the arrangement, so Nigerians should not interpret it as an enforced nationwide pump price.
How the Proposed Petrol Price Ceiling Would Work
Under the proposed arrangement, refiners and fuel importers would initially absorb costs that exceed the ₦1,350 ceiling. They could recover the difference later when crude oil prices or exchange rates become more favourable.
Oyedele said the government would review the arrangement monthly and publish relevant figures to promote transparency.
He explained that the plan aims to reduce sudden price changes rather than introduce a permanent subsidy or impose a fixed retail price. The government hopes more stable fuel costs would also reduce uncertainty for transport operators and businesses.
Petrol price increases often affect transport fares, food distribution and the cost of essential goods. Sudden changes can also make it difficult for businesses to plan their operating expenses.
FG Announces Additional Measures to Ease Fuel Costs
The government has also announced a temporary discount arrangement through Nigerian National Petroleum Company Limited retail outlets.
According to a State House statement published on October 9, NNPC Retail will forgo its petrol retail profit margin and sell fuel at cost for an initial 30-day period. The arrangement will prioritise public transport operators and other intended beneficiaries.
The government also plans to expand compressed natural gas use. It will support vulnerable households and small businesses. It also aims to reduce illegal road levies that increase transport costs.
The government is also considering advance crude oil sales to local refineries. This could help protect domestic fuel prices from global market changes.
The impact of these measures will depend on implementation and developments in the global oil market. The proposed ₦1,350 ceiling is still under negotiation. It does not mean petrol will sell at that price nationwide.
