Nigeria Proposes Petrol Price Cap At N1,350 Per Litre To Curb Fuel Volatility

Nigeria is proposing to cap petrol prices at about N1,350 ($1.02) per litre, asking refiners and fuel importers to absorb temporary increases and recoup their losses once costs ease. Minister Taiwo Oyedele announced the plan on Thursday.

The cap is a response to fuel costs surging to record highs, driven by rising global oil prices amid Middle East tensions.

30-day discount and forward crude sales

The government also plans a 30-day fuel discount programme. Under it, petrol will be sold at cost, with public transport given priority to ease the pressure from soaring pump prices.

Officials are considering forward crude sales to local refiners as well. The aim is to lock in feedstock prices and reduce exposure to swings in the global oil market.

Windfall tax on profiteers

Oyedele said the government could impose a windfall tax on energy companies found to be profiteering at consumers' expense. The proceeds would be earmarked for transport subsidies and fuel vouchers for low-income urban workers.

The measures come as rising fuel prices revive cost-of-living pressure on President Bola Tinubu's government ahead of elections in January.

What it means for Nigerians

The cap puts the burden of any short-term price spike on refiners and importers, who are expected to recover those costs later rather than pass them to the pump. For transporters and small businesses that run on petrol, the 30-day discount and the priority given to public transport could soften the immediate hit. The windfall tax plan adds a second layer of protection, with any money raised going to fuel vouchers and transport subsidies for low-income urban workers.