The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the proposed arrangement on October 8, 2026, during a briefing in Abuja on rising fuel prices and the economic pressures facing Nigerians.
Under the proposal, refiners and fuel importers would initially absorb costs exceeding the agreed ceiling and recover the difference when market conditions improve. The arrangement is intended to moderate sudden price increases caused by changes in global crude oil prices and foreign exchange rates.
FG Targets Stability in Petrol Prices
Oyedele explained that the proposed price-modulation mechanism would help reduce the immediate impact of international market fluctuations on domestic petrol costs.
The ceiling would apply to the ex-gantry or landing cost of petrol, rather than establishing a fixed nationwide pump price. The government plans to review the ceiling monthly and publish the figures to promote transparency.
The minister said reducing sharp price movements could also help limit uncertainty for businesses, transport operators and households that depend on petrol for their daily activities.
Government Rules Out Return to Fuel Subsidy
The minister maintained that the proposed arrangement would not reverse the fuel subsidy removal introduced in May 2023.
Instead, the government intends to use measures designed to manage price volatility without restoring a blanket subsidy that would place additional pressure on public finances.
The Presidency has similarly stated that the objective is to cushion consumers against rising fuel costs while retaining the broader market reforms.
NNPC Introduces Temporary Petrol Discount
Alongside the proposed ₦1,350 landing-cost ceiling, the government announced a 30-day arrangement under which NNPC Retail would forgo its retail profit margin and sell petrol at cost, with priority given to public transport operators.
The measure is intended to provide temporary relief to commercial transporters and households affected by higher fuel prices. However, the government has not specified a uniform discount per litre, and pump prices may vary between locations.
Additional Measures to Ease Economic Pressure
The government is also pursuing other interventions, including expanding compressed natural gas adoption, increasing support for vulnerable households and improving fuel distribution and logistics.
Officials say the measures are intended to reduce the effects of rising energy costs on transportation, businesses and consumer prices.
The proposed landing-cost ceiling remains subject to negotiations and periodic review. Its eventual impact on pump prices will depend on implementation, market conditions and the response of refiners and importers.
