The Federal Government has announced plans to negotiate a ceiling of N1,350 per litre on the landing or ex-gantry cost of petrol under a proposed price modulation arrangement aimed at stabilising prices.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing on petrol prices and subsidy-related issues in Abuja.
Oyedele said the arrangement was designed to limit the impact of price volatility on the domestic market, insisting that it would not amount to a return to petrol subsidy or the reintroduction of price control.
“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 the price stable,” he said.
According to the minister, refineries and fuel importers would bear costs exceeding the agreed ceiling and recover the difference later.
The government also plans to introduce forward crude oil sales to domestic refineries as part of efforts to reduce their exposure to fluctuations in international oil prices.
Oyedele said the proposed arrangement would give refiners greater certainty in planning their operations and help moderate petrol price volatility.
The announcement comes amid continued public concern over petrol prices and the rising cost of living following the removal of fuel subsidy in 2023.
The government has maintained that its proposed price modulation framework differs from a subsidy regime, although details of how the arrangement would operate, including the terms for recovering excess costs, remain central to assessing its likely impact on consumers.
