In line with the Federal Government approval for an adjustment in the pump price of petrol, the Nigerian National Petroleum Corporation (NNPC) has been directed to change its pump prices to N125 per litre starting from Wednesday, March 18.
The Federal Government had earlier approved the reduction of the pump price of Premium Motor Spirit (PMS) same day without stating the new price.
In his communique on Wednesday, Mr Timipre Sylva, the minister of state for petroleum resources stated that the drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per litre.
He further revealed that in line with the current market realities, President Buhari had directed that Nigerians should benefit from the reduction in the price of the PMS.
The minister’s statement read:
REDUCTION IN PRICE OF PETROLEUM MOTOR SPIRIT (PMS)
The drop in crude oil prices has lowered the expected open price of imported petrol below the official pump price of N145 per litre.
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 will provide a framework for 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.
Mr Sylva had last week said the government was in consultation with relevant stakeholders on the possibility of reducing the price following the crash in crude oil prices in the international market.
Following the outbreak of the coronavirus, the prices of crude oil globally have witnessed sharp deeps.
Brent Crude has been sold for $35.44 per barrel while Bonny Light has been sold at $33.63 dollars per barrel, these values are way below the $57 per barrel benchmark for the 2020 budget.
