In a bid to stabilize fuel prices and alleviate the financial burden on households and businesses, the Federal Government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol. Finance Minister Taiwo Oyedele announced the proposal during a briefing in Abuja on October 8, 2026, stating that existing measures have not adequately addressed the rising costs of fuel and transportation.

The proposed ceiling would apply to petrol either supplied from local refineries or imported into Nigeria. It is important to note that this ceiling does not directly dictate the price consumers will pay at filling stations; rather, it serves as a regulatory measure intended to stabilize the market. Oyedele emphasized that the ceiling would be reviewed monthly, with the updated figures made public to ensure transparency.

"Pump prices should not have to follow every swing in global crude or the exchange rate. The government is negotiating a ceiling of ₦1,350 a litre on the ex-gantry or landing cost of petrol to keep pump prices stable," Oyedele remarked. He explained that refiners and importers would initially absorb any costs exceeding this ceiling, allowing them to recover the shortfall when market conditions permit.

This initiative is described as a price-smoothing mechanism rather than a traditional subsidy or price control. Oyedele elaborated on the rationale behind this approach, stating that price stability is preferable to volatility: "₦1,400 a litre today and ₦1,400 a litre tomorrow is better than ₦1,500 a litre today and ₦1,300 a litre tomorrow."

In addition to the proposed ceiling, the government plans to introduce a temporary margin discount on petrol sold by the Nigerian National Petroleum Company Limited (NNPC) for an initial period of 30 days. This discount aims to support public transport operators across the country, allowing them to purchase petrol at cost without reverting to fuel subsidies.

Further measures outlined by the minister include forward sales of crude oil to domestic refiners to enhance supply certainty and reduce reliance on volatile global markets. The government also intends to collaborate with state authorities to eliminate illegal levies and road-use charges that contribute to increased transportation costs.

In light of these developments, the Nigeria Labour Congress (NLC) has issued a two-week ultimatum to the Federal Government to reduce petrol prices and commence discussions on minimum wage adjustments. The NLC's demand highlights the urgency of addressing the economic pressures facing Nigerian workers as fuel prices continue to rise.

The government is also considering implementing an excess profits tax and targeted vouchers for low-income earners. Plans to establish a national strategic fuel reserve are in the works to safeguard against supply disruptions and hoarding. Additionally, measures to improve traffic management and reduce logistics costs are being explored, with a focus on ensuring that support reaches those most in need without exacerbating economic pressures.