The Nigerian government on Tuesday morning announced a reduction in the pump price of premium motor spirit, also known as petrol, from N168 to N162.44 per litre.
This is to take effect from December 14, 2020.
Chris Ngige, the minister of Labour and Employment, made the announcement after a parley involving petrol pump price review with labour heads, which started around 9 pm on Monday and ended at 1.30 am on Tuesday morning.
The pump price of petrol has been N168 since the Petroleum Products Marketing Company (PPMC) declared a hike in the ex-depot price of the product from N147.67 per litre to N155.17 last month.
The ex-depot price is the price at which PPMC sells the product to marketers at depots.
Ngige remarked that a technical panel had been established to oversee price stability in the sector.
The committee which will report its findings on 25th January will evaluate the market forces and other factors that would guarantee stability in the industry, the minister said.
“Our discussion was fruitful and the Nigerian National Petroleum Corporation which is the major importer and marketers of petroleum products and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today,” he said.
Ngige went further to say the pump price cut was not intended to suspend deregulation, given that it did not affect crude oil price but aspects where the Nigerian National Petroleum Corporation (NNPC), the major fuel importer, had agreed it could reduce costs like freight and demurrage.
The new downward review in price, the minister stated, was the result of the consultations between a joint committee of the NNPC and representatives of labour, which considered ways of reducing costs.
Regarding electricity tariff, the two sides consented to wait until 25th January when another meeting would be held to allow the special panel dealing with complaints to complete deliberations.
(Ripples Nigeria)
