Tinubu Government has pegged fuel price at N1,350 per litre amid rising hardship and hunger in Nigeria.
NewsOnline Nigeria reports that President Bola Tinubu Federal Government has proposed a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol as part of measures to cushion the impact of rising fuel prices and ease pressure on households and businesses.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a press briefing in Abuja on fuel prices and subsidy-related issues.
Oyedele said the government was introducing a price-modulation mechanism designed to prevent sharp fluctuations in petrol prices caused by movements in global crude oil prices and the exchange rate.
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He clarified that the ₦1,350 figure represents a ceiling on the ex-gantry or landing cost and does not mean petrol will necessarily sell for ₦1,350 per litre at filling stations.
Under the proposed arrangement, refiners and importers would absorb any shortfall when the actual cost rises above the ceiling and recover the difference when market conditions improve.
“This is neither a subsidy nor price control; it is designed to smooth prices over time rather than suppressing them,” Oyedele said.
The announcement comes as Nigerians continue to grapple with higher transportation, food and other living costs, with fuel prices contributing to pressure on household budgets.
The government acknowledged that existing measures had not fully eased the pressure being experienced by households and businesses, prompting the introduction of additional interventions.
Oyedele said the government’s objective was to reduce volatility, noting that relatively stable fuel prices would provide greater certainty for consumers and businesses.
30-day petrol discount
As part of the measures, the Federal Government also announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), with public transport operators to receive priority.
Oyedele said the initiative was not a return to fuel subsidy, but an arrangement to sell the product at cost during the initial 30-day period.
The government is also considering increased forward sales of crude oil to domestic refineries as production rises, a move it says would help shield local petrol prices from international market volatility.
Measures targeting vulnerable Nigerians
The Federal Government said it is increasing funding for cash transfers to vulnerable households and providing subsidised credit for small businesses and consumers.
It is also accelerating the rollout of compressed natural gas for transport operators, while working with state governments to reduce taxes, levies and other costs that contribute to higher fuel and logistics expenses.
The government is further considering targeted vouchers for vulnerable urban earners and an excess-profit tax on operators considered to be taking undue advantage of consumers along the energy value chain.
Oyedele said the proposed ₦1,350 ceiling would be reviewed monthly, with the figures published to promote transparency.
The measures are being introduced against the backdrop of continued concerns over the cost of living and calls for policies that can provide more immediate relief to Nigerians facing rising household expenses.
