The Petroleum Products Pricing and Regulatory Agency has reduced the pump price of petrol to N123.50 per litre from the current price of N125.
This comes about a fortnight after the agency reduced the pump price to N125 from N145.
The reduction is based on the reduced landing cost of petrol into Nigeria which is caused by the global decline of crude oil prices.
The product sold for about $20 a barrel on Monday compared to about $50 a barrel it sold for about two months ago.
Abdulkadir Saidu, the Executive Secretary of PPPRA, who announced the new pump price, said all retail outlets should start selling at the new price from April 1.
Earlier, the state oil firm, NNPC, announced that it had enough petrol in circulation to ensure there was no scarcity of the essential product as millions of Nigerians remain at home because of the COVID-19 outbreak