President Bola Ahmed Tinubu-led Federal Government has made a U-turn on the pricing of Premium Motor Spirit, popularly known as petrol.
This comes as the Tinubu administration on Thursday announced a “fuel subsidy-like arrangement”, pegging the ex-gantry price at N1,350 per litre.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the announcement on Thursday during a press briefing on petrol prices and subsidy-related issues in Abuja.
According to him, the arrangement was designed to keep petrol prices stable, stressing that it was neither a subsidy nor a form of price control.
“We are introducing price modulation. The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to keep the price stable.
“When costs rise above the ceiling, refineries and importers will carry the shortfall and recover it later. This is neither a subsidy nor price control,” he said.
Oyedele further revealed that under the proposed arrangement, refineries and importers would absorb any costs above the agreed ceiling and recover the difference later.
He also announced plans for the forward sale of crude oil to domestic refineries as part of efforts to shield petrol prices from volatility in the international market.
According to him, the arrangement would allow refiners to plan their operations and provide greater certainty over prices.
Nigerian Newssphere reports that Dangote Refinery’s fuel gantry price stood at N1,350 per litre. Also, ex-depot prices at depots stood between N1,355 and N1,360 per litre.
Currently, petrol pump prices in Abuja and its environs stand between N1,370 and N1,400 per litre.
Recall that Tinubu, in his Independence Day speech, had hinted that there was no going back on his reforms. However, he noted that the hardship was over and that it was now time for prosperity.
This comes as the presidential candidate of the African Democratic Congress, Atiku Abubakar, had promised to return fuel subsidies if elected in 2027.
However, Tinubu, who is seeking re-election, has questioned Atiku’s stance on the return of fuel subsidies.
