President Muhammadu Buhari has approved the reduction in the pump
price of premium motor spirit (PMS) from N145 per litre to about N125.
The reduction was as a result of the slump in the
international crude oil price from $60 to $30, causing fear of a possible
economic crisis.
The approval followed a presentation by Minister of State
petroleum resources Mr Timipre Sylva to the Federal Executive Council (FEC), on
Wednesday.
The Minister briefed the council on the need to reduce the
pump price following the global fall in oil price.
The Minister said that already he had met with members of the organized Labour in the oil and gas sector before proceeding to make the formal announcement for the price adjustment.
He said that the organized labour was happy with the
reduction in petroleum pump price.
A statement by the Minister read thus: “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 utilization as a
transport fuel.”
It was reliably gathered that the outbreak of COVID-19, has
made the international crude oil price to crash from $60 to $30, causing fear
of a possible economic crisis.
He said the new price regime takes effect immediately and
that the NNPC and PPPRA will take care of the implementation.
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