FG Introduces New Petrol Price Ceiling Under Fresh Arrangement

According to a report by Daily Post on October 8, 2026, the new strategy put forward by the Federal Government to keep the downstream petroleum market stable includes a cap on petrol prices of 1,350 rupees per liter.

At a news conference in Abuja on Thursday, Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele revealed the plan in response to questions about the potential reinstatement of gasoline subsidies and the increasing cost of fuel.

According to Oyedele, the government is aiming for a system called price modulation that would cap the cost of petrol at ₦1,350 per liter in the ex-gantry or landing area.

He made it clear that the initiative is not meant to be seen as a return to fuel subsidies or a way for the government to directly control prices.

The minister clarified that in the event that the agreed-upon ceiling for the cost of supplying gasoline is exceeded, the extra expenses will be borne initially by refineries and importers, and the difference will be recovered later.

He claims the deal’s stated goal is to make the petroleum market more stable by lowering the frequency of unexpected price spikes.

In addition, Oyedele announced that local refineries will be able to take advantage of forward crude oil sales, which will allow them to better weather fluctuations in global crude oil prices.

Domestic refiners would have more certainty in operational planning and production cost management, he said, thanks to the proposed system.

Concerns about the impact of rising petrol prices on household budgets and transportation costs prompted the initiative.

Rather than announcing a confirmed uniform retail price at gas stations, the announcement centers on the proposed ceiling for ex-gantry or landing costs.

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