The Federal Government (FG) has approved the reduction of the pump price of Premium Motor Spirit (PMS), popularly referred to as petrol, from N145 per litre to N125 per litre with immediate effect.
The order from FG to the Nigerian National Petroleum Corporation (NNPC) for the reduction is coming against the backdrop of the crash in crude oil prices globally.
The President also ordered NNPC to immediately reduce the ex-coastal and ex-depot price of the premium motor spirit to reflect the current market realities.
The President said that it was part of the measure put being put in place by the Federal Government to help provide relief to Nigerians and provide a framework for the sustainable supply of the product.
Given the directive on behalf of the President, the Minister of State for Petroleum Resources, Mr Timipre Sylva, said that enforcement of compliance by petroleum marketers is to be enforced by NNPC and the Petroleum Product Pricing Regulatory Agency (PPPRA). The price reduction is expected to affect all petroleum products.
The minister also said that the ministry is going to adopt a price modulation mechanism so that the price of petroleum product can be regulated as the market dictates.
The minister also assured Nigerians that the ministry will continue to encourage Nigerians to make use of compressed natural gas to complement PMS utilization as a transport fuel.
Nairametrics had reported last week that the Federal Government was considering the reduction of the pump price of fuel as a result of crash in crude oil prices globally. Nigerians became hopeful of eventual cut in the price of PMS when the Minister disclosed that the Federal Government was consulting with stakeholders to determine the new price of the product.
The bonny light crude sold for $33.63 which is below the $57 2020 budget benchmark.
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