The Federal Government has announced a price ceiling of N1,350 per litre for petrol under a new arrangement aimed at reducing fluctuations in the domestic fuel market.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday during a briefing on petrol prices and subsidy-related issues in Abuja.

Oyedele said the policy, described as price modulation, would establish a limit on the ex-gantry or landing cost of petrol to help maintain price stability.

He clarified that the measure was neither a reintroduction of fuel subsidy nor a form of price control.

Under the arrangement, refineries and fuel importers would initially absorb costs above the agreed ceiling and recover the difference later.

The government also plans to introduce forward crude oil sales to domestic refineries to help operators secure supplies ahead of time and plan their operations more effectively.

According to Oyedele, the measures are intended to reduce the impact of fluctuations in international oil markets on domestic petrol prices and provide greater certainty for local refiners.