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.