The Federal Government has announced plans to introduce a price-stabilisation mechanism aimed at limiting fluctuations in petrol prices, including a proposed ceiling of ₦1,350 per litre on the cost of petrol supplied by refineries and importers.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday, October 8, 2026, during a press briefing in Abuja, explaining that the initiative is designed to protect households and businesses from sudden increases in fuel and transportation costs.
Under the proposed arrangement, refiners and fuel importers would absorb costs exceeding the agreed ceiling and recover the difference later when market conditions improve. The ceiling would be reviewed monthly, with the figures published to promote transparency.
Oyedele stressed that the proposal is neither a return to fuel subsidy nor a form of price control, but a price-smoothing mechanism intended to reduce the impact of fluctuations in international crude oil prices and foreign exchange rates.
The minister also announced other measures, including a 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) retail stations, with priority given to public transport operators. Under the arrangement, NNPC Retail would temporarily forgo its retail profit margin and sell petrol at cost.
Additional plans include forward sales of crude oil to domestic refineries, the removal of illegal levies that increase transportation costs, expanded support for vulnerable households and small businesses, and an accelerated rollout of compressed natural gas (CNG) for transport operators.
The government is also considering an excess-profit tax on energy operators who take undue advantage of consumers, with proceeds intended to support vulnerable Nigerians affected by rising fuel prices.
The proposed measures come amid rising global oil prices and renewed concerns over the cost of living in Nigeria. The government says its objective is to moderate sudden price increases while maintaining the gains of petrol subsidy removal in May 2023.
