President, Muhammadu Buhari, on Wednesday, approved the reduction in pump price of Premium Motor Spirit (PMS) from N145 per liter to about N125. (N369=$1)
Minister of State for Petroleum Resources, Mr. Timipre Sylva, told journalists at the end of the weekly Federal Executive Council (FEC) that the reduction in the pump price of petrol was because of the global fall in the price of crude oil.
Reading from a prepared text titled ‘Reduction in the price of Petroleum Motor Spirit (PMS),’ Mr Sylva said: “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 Petroleum Products Pricing Regulatory Agency (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.”
