Petrol: FG Sets N1,350 Landing Cost Target, Rules Out Subsidy
The Federal Government is targeting a ₦1,350-per-litre ceiling on the landing cost of petrol as part of fresh measures to stabilise pump prices and cushion Nigerians from rising fuel and transportation costs.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday at a briefing in Abuja, saying the proposed ceiling would be reviewed monthly.
Oyedele explained that the ₦1,350 figure is not a proposed pump price, but a ceiling on the ex-gantry or landing cost aimed at preventing fluctuations in global crude prices and the exchange rate from immediately triggering sharp increases at filling stations.
Under the proposed arrangement, refiners and importers would initially absorb costs above the ceiling and recover the difference when market conditions improve.
The minister said the mechanism was neither a subsidy nor price control, arguing that it would reduce the volatility that makes fuel and transportation costs unpredictable.
The government also plans a temporary margin discount on petrol supplied by the Nigerian National Petroleum Company Limited for an initial 30 days, with priority given to public transport operators.
Other measures include forward crude sales to local refiners, increased support for vulnerable households and small businesses, accelerated compressed natural gas adoption for transport operators, and efforts to eliminate illegal levies and road-use charges that increase transport costs.
The government is also considering targeted vouchers for low-income earners, an excess profits tax, a strategic fuel reserve and measures to reduce logistics and regulatory costs.
Oyedele said the measures would be implemented in collaboration with state governments, with the aim of easing pressure on households and businesses without creating additional strain on the wider economy.
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