Market News

ABUJA, Oct 8 (Reuters) – Nigeria is proposing a measure to cap petrol prices at about 1,350 naira ($1.02) per litre, asking refiners and fuel importers to absorb temporary increases and recoup losses once costs ease, its finance minister said on Thursday.

• Minister Taiwo Oyedele said the measure had become necessary after fuel costs surged to record highs, driven by rising global oil prices amid Middle East tensions.
• The government also plans a 30-day fuel discount programme, selling petrol at cost and prioritising public transport to ease pressure from soaring pump prices.
• Officials are considering forward crude sales to local refiners too to lock in feedstock prices and reduce exposure to swings in global oil markets, he said.
• Oyedele said the government could impose a windfall tax on energy companies found to be profiteering at consumers’ expense, with proceeds earmarked for transport subsidies and fuel vouchers for low-income urban workers.
• Rising fuel prices have revived fresh cost-of-living pressure on President Bola Tinubu’s government ahead of elections in January.

($1 = 1,329.8300 naira)