The Federal Government has pegged the price of Premium Motor Spirit, PMS, otherwise known as petrol to N1,350 per litre.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made this 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.

‘What cutting fuel price really means’ – Presidency explains
‘What cutting fuel price really means’ – Presidency explains
“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 equally 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.