The federal government on Wednesday approved a reduction in the pump price of petrol.
The minister of state for petroleum resources, Mr. Timipre Sylva said in a statement that President Muhammadu Buhari had approved the reduction.
Although Sylva did not disclose the new price, he directed the National Petroleum Corporation (NNPC) to reduce the ex-coastal and ex-depot prices of the product to reflect current market realities.
He said the decision was taken in response to the “direct effect of the crash in global crude oil prices.”
Currently, the product sells for N145 per litre while the price of crude oil in the international market has plummeted below $30 per barrel.
The statement:
Reduction in the price of Petroleum Motor Spirit (PMS)
“The drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per liter.
“Therefore, Mr. President has approved that Nigerians should benefit from the reduction in the price of PMS which is a direct effect of the crash in global crude oil prices.
“In view of this situation, based on the price modulation template approved in 2015, the federal government is directing the Nigerian National Petroleum Corporation (NNPC), to reduce the ex-coastal and ex-depot prices of PMS to reflect current market realities.
“Also, the PPPRA shall subsequently issue a monthly guide to NNPC and marketers on the appropriate pricing regime.
“The agency is further directed to modulate pricing in accordance with prevailing market dynamics and respond appropriately to any further oil market development.
“It is believed that this measure will have a salutary effect on the economy, provide relief to Nigerians and would provide a framework for a sustainable supply of PMS to our country.
“The ministry of petroleum resources will continue to encourage the use of compressed natural gas to complement PMS utilisation as transport fuel.”
