The Federal Government is negotiating a petrol price ceiling of ₦1,350 per litre on landing costs as part of efforts to reduce sudden fuel price increases and ease the financial burden on Nigerians. The proposal comes amid rising global oil prices and growing concerns about the cost of transportation, food and other essential goods.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the proposed arrangement during a briefing in Abuja on Thursday, October 8, 2026. He explained that the government wants to limit sharp changes in petrol costs without restoring the nationwide fuel subsidy that ended in 2023.
According to the government, the proposed measure would help protect domestic fuel prices from immediate increases whenever international crude oil prices or foreign exchange rates change. However, the ₦1,350 ceiling applies to petrol’s landing or ex-gantry cost, not the final pump price at filling stations.
The government has yet to finalise the arrangement, meaning motorists should not expect every filling station to sell petrol at ₦1,350 per litre.
How the Proposed Petrol Price Ceiling Would Work
Under the proposed petrol price ceiling, refiners and fuel importers would initially absorb costs that rise above the agreed limit. They could recover the difference later when crude oil prices or exchange rates become more favourable.
The government plans to review the ceiling monthly and publish the relevant figures to promote transparency. This approach aims to make fuel costs more predictable for businesses and consumers, particularly during periods of international market instability.
Oyedele said the arrangement would smooth out price movements rather than permanently suppress them. He argued that keeping prices relatively stable could reduce uncertainty for transport operators, manufacturers and businesses that depend heavily on petrol.
However, the proposal does not guarantee an immediate reduction in pump prices. Retail prices will still depend on factors such as distribution expenses, operating costs and the final structure of the agreement.
The government is also considering forward crude oil sales to domestic refineries. This arrangement could give refiners greater certainty about supply costs and help protect local fuel prices from international market fluctuations.
FG Introduces Additional Measures to Reduce Fuel Costs
Alongside the proposed ceiling, the Federal Government has announced a temporary discount arrangement through Nigerian National Petroleum Company Limited retail outlets.
Under the plan announced on October 8, NNPC Retail will forgo its petrol retail profit margin and sell fuel at cost for an initial 30-day period. Public transport operators will receive priority under the arrangement, which aims to reduce some of the pressure that rising fuel prices place on commuters.
The government has stressed that this measure does not represent a return to the former blanket petrol subsidy. Instead, it intends to provide temporary relief while maintaining the existing fuel market reforms.
Other measures include expanding compressed natural gas use and increasing financial support for vulnerable households and small businesses. The government also plans to tackle illegal road levies that increase transport fares and logistics expenses.
In addition, authorities are considering targeted support for low-income earners and measures to discourage operators from taking undue advantage of consumers during periods of rising energy costs.
What the Proposal Means for Nigerians
The proposed petrol price ceiling could help businesses plan their expenses if it reduces sudden changes in fuel costs. Transport operators may also benefit from greater price stability, although any savings would need to translate into more affordable fares for passengers.
For households, the main concern remains whether these measures will reduce the cost of daily living. Higher fuel prices often increase the cost of moving food, delivering goods and providing essential services, placing additional pressure on already stretched budgets.
Nevertheless, the success of the proposed arrangement will depend on its implementation, cooperation from refiners and importers, and changes in the global oil market.
For now, the ₦1,350 petrol price ceiling remains under negotiation. It is not a confirmed nationwide pump price, and Nigerians will need to await further government announcements for details about its implementation.
