Amid the glut in the oil market, and the coronavirus disease ravaging the globe, President Muhammadu Buhari, Wednesday ordered a reduction in the pump price of petrol.
This is contained in a statement by the Minister of State for Petroleum, Timipre Sylva, issued in Abuja today.
President Buhari, however, did not fix a new price of petrol but rather asked the appropriate agency, PPPRA, to do so.
The current official price of petrol is N145 per litre.
The minister linked the president’s directive to the drop in the international oil price.
Oil accounts for over seventy-five per cent of the country’s revenue.
Below is the minister’s full statement below.
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 utilization as transport fuel.