Petrol Price Cap of ₦1,350: What FG's New Fuel Plan Means for You

The Federal Government is negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol, not on the pump price, and NNPC Retail will sell petrol at cost, with no profit margin, for 30 days. Under the plan announced on 8 October 2026, refiners and importers would absorb costs above the ceiling and recover them later when crude prices or the exchange rate improve. The ceiling is to be reviewed monthly.

What exactly did the government announce?

Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele described the plan as "price modulation": pump prices should not have to follow every swing in global crude or the exchange rate. The main parts, as set out in a statement from presidential adviser Bayo Onanuga, are:

1. A proposed ₦1,350 ceiling on the ex-gantry (refinery gate) or landing cost of petrol.
2. Cost sharing over time. If real costs go above ₦1,350, refiners and importers carry the difference for now and recover it when conditions turn favourable.
3. NNPC Retail selling at cost for 30 days. If landing cost is, say, ₦1,300, NNPC Retail stations would sell at ₦1,300.
4. Forward sales of crude to local refiners, to improve supply and reduce exposure to global shocks.
5. Monthly reviews with figures published for transparency.

Ex-gantry vs pump price: the key difference

The ₦1,350 figure is a wholesale cost, not what you pay at the station. Pump prices add transport, dealer margins and other charges, so they will still differ by city and by filling station. This is the point most people miss when they see the headline.

Where fuel prices stand right now

Diesel has now been cut twice in October, from ₦1,850 to ₦1,780 on 1 October and then to ₦1,700 on 7 October. MEMAN data showed the seven-day average landing cost of diesel falling from ₦1,871.34 to ₦1,823.19 per litre.

Why the government is doing this

Petrol is a major driver of transport fares and food prices. Dangote raised its petrol gantry price several times between August and September before trimming it in October, and pump prices in several places moved above ₦1,400. A ceiling aims to stop sudden jumps from flowing straight into household budgets, without returning to the old open-ended subsidy.

Who carries the risk?

The burden shifts largely to suppliers. Dangote Refinery, which now supplies about 71% of Nigeria's petrol according to the regulator, would carry part of any cost overrun until it can recover it. Analysts quoted by Business Times Nigeria say the details that matter most are the final terms of the ceiling, how deferred costs are recovered and how risk is split between suppliers and government. Those terms are still being negotiated.

What this means for investors

For listed oil and gas marketers and producers on the NGX, the plan adds a policy variable to margins. The NGX Oil/Gas Index was the worst-performing sector index last week, down 3.85%, and Aradel Holdings fell 10% in one session on 8 October. It is not possible to say how much of that was linked to the fuel plan, but investors in the sector should watch for the final ceiling terms and recovery rules. For the Dangote Refinery IPO, which closes on 13 October, the plan is one of several risks worth reading about in the prospectus.

This is for information only and is not investment advice.

FAQ

Is the petrol pump price now fixed at ₦1,350?

No. The proposed ₦1,350 ceiling applies to the ex-gantry or landing cost of petrol. Pump prices include transport and retail margins and will vary by location.

How long will NNPC sell petrol at cost?

NNPC Retail will sell petrol at its landing cost, without a profit margin, for 30 days, according to the government.

What is Dangote's petrol and diesel price now?

The latest reported gantry prices are ₦1,325 per litre for petrol and ₦1,700 per litre for diesel (diesel from 7 October 2026).

Sources

• The Abuja Inquirer, "FG to cap petrol landing cost at N1,350, mandates NNPC to forego profit" (8 Oct 2026): https://theabujainquirer.com/2026/10/08/fg-to-cap-petrol-landing-cost-at-n1350-mandates-nnpc-to-forego-profit/
• PetroleumPrice.ng, "FG Introduces Petrol Price Control" (8 Oct 2026): https://www.petroleumprice.ng/news/articles/breaking-fg-introduces-petrol-price-control-sets-gantry-price-at-1350litre
• Business Times Nigeria (9 Oct 2026): https://businesstimes.com.ng/2026/10/nigerias-n1350-petrol-price-plan-shifts-fuel-cost-burden-to-dangote-refinery-importers/
• The Scoop Nigeria, Dangote diesel cut: https://thescoopnigeria.com/dangote-diesel-price-refinery-cuts-gantry-price-by-%e2%82%a680-to-%e2%82%a61700-per-litre/
• Proshare, weekly index report (9 Oct 2026): https://proshare.co/articles/the-proshare-index-report-9oct26-equities-extend-losses-as-oilgas-index-leads-broad-decline?menu=Market&classification=Read&category=Stock+%26+Analyst+Updates