Petroleum downstream marketers in Nigeria have strongly opposed the Federal Government’s plan to set a ₦1,350-per-litre price ceiling on Premium Motor Spirit (PMS), arguing that artificial price controls undermine the core principles of a fully deregulated market.
The pushback follows an announcement by the Federal Government outlining a price modulation mechanism aimed at capping the ex-gantry and landing costs of petrol at ₦1,350 per litre. Under the proposed model, refineries and importers would absorb shortfalls during periods of international price surges and recover costs when global oil prices decline.
Speaking on behalf of the government on Thursday, October 15, 2026, during an industry engagement in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, defended the measure as a temporary intervention to protect households from severe volatility:
”We are introducing price modulation. The government is negotiating a ceiling of ₦1,350 per liter 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.”
Major downstream stakeholders, led by the Major Energies Marketers Association of Nigeria (MEMAN), publicly rejected the price ceiling during an industry briefing held early Friday morning, October 16, 2026, in Lagos.
Marketers contended that setting arbitrary price limits without addressing fundamental cost drivers, such as foreign exchange rates, transportation, storage, and port handling fees, risks distorting the supply chain and creating artificial fuel shortages.
Market representatives highlighted key points that include: Market-Driven Mechanisms. Prices must be determined dynamically through open competition, distribution efficiency, and transparent supply chains rather than administrative caps.
Unviable price ceilings discourage private investment and hamper importers and domestic refiners from maintaining steady operations.
Priority should be given to domestic production, such as supply from local refineries, while maintaining regulated access to imports to fill structural gaps without resorting to state-enforced price floors or ceilings.
The debate over the proposed ₦1,350 ceiling underscores the ongoing friction between consumer protection policies and the operational requirements of Nigeria’s deregulated energy market.
Marketers called for clear bulk-supply agreements, transparent regional pricing benchmarks, and structured coordination among domestic refiners, importers, and regulatory agencies to ensure long-term energy security across the country.
