President Muhammadu Buhari on Wednesday approved cut in price of premium motor spirit (PMS), commonly known as petrol to N125, from the current N145 per litre.
The cut is coming on the backdrop of current fall in crude oil prices.
The 13.79% cut is coming on the backdrop of current fall in crude oil prices as a result of the epidemic; Coronavirus.
It was gathered from presidency sources that the approval followed presentation by minister of state petroleum resources, Timipre Sylva, to the Federal Executive Council (FEC), on Wednesday, on the need to reduced the pump price following the global fall in oil price.
At the behest of the spread of Covid19, international crude oil price slumped from $60 to $30, causing fear of a possible economic crisis.
It was gathered that going forward, the government would allow the international price of crude to determine the prices of the product in Nigeria.
Confirming the development, Mele K. Kyari
Group Managing Director, NNPC, said; “In compliance with the directives of the Honourable Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.
“Effective 19th March 2020, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre.
“These reductions will therefore translate to N125/litre retail pump price.
“Despite the obvious cost implication of this immediate adjustment to the Corporation, NNPC is delighted to effect this massive reduction of N20/litre for the benefit of all Nigerians.
“Accordingly, all NNPC Retail stations nationwide have been directed to change the retail pump price to N125/litre.”
JUST IN:
PMS PRICE ADJUSTMENT
In compliance with the directives of the Honourable Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.
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— NNPC Group (@NNPCgroup) March 18, 2020
President Buhari had on Tuesday assured that his administration will do whatever is possible to reduce the effect of the current hardship on the back of ravaging Corona Virus Pandemic.
