diff --git a/nimbus/sealer.nim b/nimbus/sealer.nim
index b5105a2f7..3aca8ae3d 100644
--- a/nimbus/sealer.nim
+++ b/nimbus/sealer.nim
@@ -70,9 +70,6 @@ proc validateSealer*(conf: NimbusConf, ctx: EthContext, chain: Chain): Result[vo
 
   ok()
 
-proc isLondon(c: ChainConfig, number: BlockNumber): bool {.inline.} =
-  number >= c.londonBlock
-
 proc prepareBlock(engine: SealingEngineRef,
                    parent: BlockHeader,
                    time: Time,
@@ -86,22 +83,6 @@ proc prepareBlock(engine: SealingEngineRef,
 
   var blk = engine.txPool.ethBlock()
 
-  # TODO: fix txPool GasLimit to match this GasLimit
-  let conf = engine.chain.db.config
-  if isLondon(conf, blk.header.blockNumber):
-    var parentGasLimit = parent.gasLimit
-    if not isLondon(conf, parent.blockNumber):
-      # Bump by 2x
-      parentGasLimit = parent.gasLimit * EIP1559_ELASTICITY_MULTIPLIER
-    # TODO: desiredLimit can be configured by user, gasCeil
-    blk.header.gasLimit = calcGasLimit1559(parentGasLimit, desiredLimit = DEFAULT_GAS_LIMIT)
-  else:
-    blk.header.gasLimit = computeGasLimit(
-      parent.gasUsed,
-      parent.gasLimit,
-      gasFloor = DEFAULT_GAS_LIMIT,
-      gasCeil = DEFAULT_GAS_LIMIT)
-
   if engine.chain.isBlockAfterTtd(blk.header):
     blk.header.difficulty = DifficultyInt.zero
     blk.header.mixDigest = prevRandao
diff --git a/nimbus/utils/tx_pool.nim b/nimbus/utils/tx_pool.nim
index 3ee3b82b0..28d77aa51 100644
--- a/nimbus/utils/tx_pool.nim
+++ b/nimbus/utils/tx_pool.nim
@@ -719,7 +719,12 @@ proc `baseFee=`*(xp: TxPoolRef; val: GasPrice)
 proc `lwmTrgPercent=`*(xp: TxPoolRef; val: int) =
   ## Setter, `val` arguments outside `0..100` are ignored
   if 0 <= val and val <= 100:
-    xp.chain.lhwm = (lwmTrg: val, hwmMax: xp.chain.lhwm.hwmMax)
+    xp.chain.lhwm = (
+      lwmTrg: val,
+      hwmMax: xp.chain.lhwm.hwmMax,
+      gasFloor: xp.chain.lhwm.gasFloor,
+      gasCeil: xp.chain.lhwm.gasCeil
+    )
 
 proc `flags=`*(xp: TxPoolRef; val: set[TxPoolFlags])
     {.gcsafe,raises: [Defect,CatchableError].} =
@@ -729,7 +734,12 @@ proc `flags=`*(xp: TxPoolRef; val: set[TxPoolFlags])
 proc `hwmMaxPercent=`*(xp: TxPoolRef; val: int) =
   ## Setter, `val` arguments outside `0..100` are ignored
   if 0 <= val and val <= 100:
-    xp.chain.lhwm = (lwmTrg: xp.chain.lhwm.lwmTrg, hwmMax: val)
+    xp.chain.lhwm = (
+      lwmTrg: xp.chain.lhwm.lwmTrg,
+      hwmMax: val,
+      gasFloor: xp.chain.lhwm.gasFloor,
+      gasCeil: xp.chain.lhwm.gasCeil
+    )
 
 proc `maxRejects=`*(xp: TxPoolRef; val: int) =
   ## Setter, the size of the waste basket. This setting becomes effective with
diff --git a/nimbus/utils/tx_pool/tx_chain.nim b/nimbus/utils/tx_pool/tx_chain.nim
index 346c5eb80..40f3e47eb 100644
--- a/nimbus/utils/tx_pool/tx_chain.nim
+++ b/nimbus/utils/tx_pool/tx_chain.nim
@@ -128,6 +128,8 @@ proc new*(T: type TxChainRef; db: BaseChainDB; miner: EthAddress): T
   result.miner = miner
   result.lhwm.lwmTrg = TRG_THRESHOLD_PER_CENT
   result.lhwm.hwmMax = MAX_THRESHOLD_PER_CENT
+  result.lhwm.gasFloor = DEFAULT_GAS_LIMIT
+  result.lhwm.gasCeil  = DEFAULT_GAS_LIMIT
   result.calcDifficulty = proc(timeStamp: EthTime, parent: BlockHeader):
                                DifficultyInt {.gcsafe, raises:[].} =
     try:
diff --git a/nimbus/utils/tx_pool/tx_chain/tx_gaslimits.nim b/nimbus/utils/tx_pool/tx_chain/tx_gaslimits.nim
index 57076e4f3..1d7d52e06 100644
--- a/nimbus/utils/tx_pool/tx_chain/tx_gaslimits.nim
+++ b/nimbus/utils/tx_pool/tx_chain/tx_gaslimits.nim
@@ -17,8 +17,8 @@ import
   ../../../chain_config,
   ../../../db/db_chain,
   ../../../constants,
-  ../../../forks,
-  eth/[common]
+  ../../../utils/header,
+  eth/[common, eip1559]
 
 {.push raises: [Defect].}
 
@@ -30,6 +30,10 @@ type
     hwmMax: int ##\
       ## VM executor may stop if this per centage of `maxLimit` has
       ## been reached.
+    gasFloor: GasInt
+      ## minimum desired gas limit
+    gasCeil: GasInt
+      ## maximum desired gas limit
 
   TxChainGasLimits* = tuple
     gasLimit: GasInt ## Parent gas limit, used as a base for others
@@ -83,6 +87,9 @@ proc setPreLondonLimits(gl: var TxChainGasLimits) =
     gl.minLimit = gl.gasLimit - delta
     gl.trgLimit = gl.gasLimit
 
+proc isLondon(c: ChainConfig, number: BlockNumber): bool {.inline.} =
+  number >= c.londonBlock
+
 # ------------------------------------------------------------------------------
 # Public functions
 # ------------------------------------------------------------------------------
@@ -92,9 +99,7 @@ proc gasLimitsGet*(db: BaseChainDB; parent: BlockHeader; parentLimit: GasInt;
   ## Calculate gas limits for the next block header.
   result.gasLimit = parentLimit
 
-  let nextFork = db.config.toFork(parent.blockNumber + 1)
-
-  if FkLondon <= nextFork:
+  if isLondon(db.config, parent.blockNumber+1):
     result.setPostLondonLimits
   else:
     result.setPreLondonLimits
@@ -106,6 +111,19 @@ proc gasLimitsGet*(db: BaseChainDB; parent: BlockHeader; parentLimit: GasInt;
   result.hwmLimit = max(
     result.trgLimit, (result.maxLimit * pc.hwmMax + 50) div 100)
 
+  # override trgLimit, see https://github.com/status-im/nimbus-eth1/issues/1032
+  if isLondon(db.config, parent.blockNumber+1):
+    var parentGasLimit = parent.gasLimit
+    if not isLondon(db.config, parent.blockNumber):
+      # Bump by 2x
+      parentGasLimit = parent.gasLimit * EIP1559_ELASTICITY_MULTIPLIER
+    result.trgLimit = calcGasLimit1559(parentGasLimit, desiredLimit = pc.gasCeil)
+  else:
+    result.trgLimit = computeGasLimit(
+      parent.gasUsed,
+      parent.gasLimit,
+      gasFloor = pc.gasFloor,
+      gasCeil = pc.gasCeil)
 
 proc gasLimitsGet*(db: BaseChainDB; parent: BlockHeader;
                    pc: TxChainGasLimitsPc): TxChainGasLimits =