Nigerian Fuel Price Conditions for Subsidy Continuation

Ibe Kachikwu, Nigeria's Minister of State for Petroleum Resources, outlined three conditions required for the federal government to maintain the current fuel price cap at N145 per litre.

These conditions include a special foreign exchange provision for importers, a tax holiday for fuel marketers, or introducing pump price differentials between NNPC and private stations.

The proposed measures aim to ensure NNPC stations continue selling at the subsidized rate while private stations operate at market prices. This approach seeks to balance affordability and supply stability amid ongoing fuel shortages.

Kachikwu emphasized the Ministry lacks authority to adjust prices directly but plans to address market competitiveness and supply efficiency through these structural changes. He noted that price modulation remains a last resort.