The Federal Government is proposing a petrol price cap of about one thousand, three hundred and fifty naira per litre to reduce the impact of rising fuel costs on Nigerians.

The Minister of Finance, Taiwo Oyedele, says the proposal would require fuel importers and local refiners to absorb temporary price increases and recover their losses when costs come down.

The move follows a surge in global oil prices linked to tensions in the Middle East, which has pushed petrol prices to record levels.

The government is also planning a 30-day fuel discount programme, under which petrol would be sold at cost, with priority given to public transportation.

Officials are also considering forward crude oil sales to local refineries to help stabilise feedstock prices and reduce the impact of fluctuations in the international oil market.

Oyedele says the government may introduce a windfall tax on energy companies found to be exploiting consumers, with the revenue used to fund transport subsidies and fuel vouchers for low-income urban workers.

The proposed measures come as rising fuel prices increase the cost-of-living pressure on President Bola Tinubu’s administration ahead of Nigeria’s 2027 elections.