The Nigerian Government has proposed a price modulation framework that would cap the ex-gantry price of petrol at N1,350 per litre to stabilise prices without reintroducing fuel subsidy.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a briefing on downstream sector stability in Abuja, stressing that the proposal was still under negotiation.
Oyedele said the framework would require refineries and importers to absorb costs exceeding the proposed ceiling and recover the difference later when market conditions improve.
“We are introducing price modulation. The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to keep prices stable. When costs rise above the ceiling, refineries and importers will carry the shortfall and recover it later. This is neither a subsidy nor price control,” he said.
Under the proposed arrangement, refineries and depots, including Dangote Refinery, Pinnacle, Matrix, Ascon and Rano, would not be permitted to sell petrol above N1,350 per litre at the ex-gantry level.
Oyedele explained that if the actual landing cost rose to N1,380 per litre, for instance, the N30 difference would initially be borne by the refiner or importer and recovered when crude oil prices declined or the naira strengthened.
He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was expected to publis
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Market checks on Thursday indicated that prices were already below the proposed ceiling, with Dangote Refinery selling at N1,325 per litre, Pinnacle at N1,326 and Ascon at N1,327.
The minister also disclosed that the Federal Government waived N3.3 trillion in taxes, import duties, port charges and regulatory fees on petrol between January 1 and September 30, 2026, as part of efforts to moderate prices. He said the waiver period had ended.
As an immediate relief measure, Oyedele said NNPC Limited would sell petrol at cost for an initial 30 days, with priority given to public transport operators nationwide.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance with priority for public transporters nationwide. So it’s not a subsidy; the government is just saying we sell to you at cost,” he said.
The arrangement would involve NNPC Limited removing its profit margin, potentially reducing pump prices at its stations by between N30 and N40 per litre.
Oyedele argued that restoring full fuel subsidy would place unsustainable pressure on public finances.
He said the government’s Ways and Means balance, which stood at N30 trillion in May 2023, could have risen to N60 trillion if subsidy had continued. He also warned that petrol prices could have exceeded N3,000 per litre on the black-market during periods of scarcity.
Other measures announced include expanded cash transfers to vulnerable households, subsidised credit for small and medium-sized enterprises and an accelerated rollout of compressed natural gas (CNG).
The proposed ceiling could provide greater price certainty for marketers and traders, although its impact would depend on the movement of crude oil prices, exchange rates and the mechanism for recovering costs incurred above the limit.
The government is yet to finalise the framework, meaning the proposed N1,350-per-litre ceiling is not yet an enforceable price limit. Its implementation will depend on the outcome of negotiations and the formal framework to be published by the NMDPRA.
