The Federal Government has announced the introduction of a new price modulation mechanism for petrol, with a proposed ceiling of ₦1,350 per litre.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while explaining the government’s latest approach to managing petrol prices.
Oyedele said under the arrangement, the government would negotiate a ceiling of ₦1,350 per litre, adding that when the cost of petrol rises above the agreed ceiling, refineries and importers would bear the shortfall temporarily and recover the difference later.
According to him, the arrangement is designed to provide price stability without amounting to a subsidy or imposing direct price controls.
“We are introducing price modulation. Government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol to keep the price stable,” Oyedele said.
