As Nigerians lament the rising cost of petrol, the Federal Government has pegged he price of Premium Motor Spirit, PMS, popularly known as petrol to N1,350 per litre.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced this on Thursday during a press briefing on petrol prices and subsidy-related issues in Abuja.
He stated that the new arrangement was out in place to keep prices of petrol stable, noting 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 said 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 ahead sale of crude oil to domestic refineries as part of efforts to shield petrol prices from volatility in the international market.
According to Oyedele, the arrangement would allow refiners to plan their operations and provide greater certainty over prices.
