Marketers Reject Government’s Plan to Cap Petrol Price at ₦1,350

Petroleum marketers have rejected the Federal Government’s proposed ₦1,350-per-litre ceiling on petrol supply costs, saying market competition and improved distribution are better ways to address rising fuel prices.

The Major Energies Marketers Association of Nigeria said government-imposed price limits would not solve the problems affecting the petroleum market.

In a summary of its third-quarter media engagement held virtually on Thursday with S&P Global Energy, MEMAN said, “Government arbitrary price caps are not the solution to petroleum market challenges.”

It added, “Rather than distorting market prices, the focus should be on transparent, market-driven pricing, efficient distribution and measures that address supply bottlenecks and reduce operating costs.”

The position comes after Finance Minister Taiwo Oyedele announced that the Federal Government was negotiating a ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost.

Under the proposed arrangement, refiners and importers would initially bear costs above the ceiling and recover the shortfall later when market conditions improve.

The government says the plan would be reviewed monthly to help reduce sudden price changes.

Oyedele said the arrangement was neither a subsidy nor price control but a way to stabilise prices.

The government’s proposal followed rising fuel prices linked to disruptions in international oil markets.

It also announced a 30-day petrol discount at Nigerian National Petroleum Company Limited filling stations, prioritising public transport operators.

MEMAN called for clearer supply agreements, better storage and transportation arrangements, and improved access to market information.

The association also urged the government to prioritise petrol from domestic refineries while allowing imports to fill supply gaps.

It maintained that predictable pricing, efficient supply chains and fair competition would improve fuel availability and protect consumers without relying on government-imposed price controls.

The debate highlights the challenge of reducing fuel costs while ensuring that refiners, importers and marketers can operate sustainably.