FG reduces fuel price to N162.44 per litre

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By Aiyeku Timothy

The Federal Government has reduced pump price of Premium Motor Spirit, otherwise known as petrol, from N168 to N162.44 per litre with effect from December 14.

The Minister of Labour and Employment, Dr Chris Ngige, made this announcement at the end of a meeting with labour leaders which began around 9 pm on Monday and ended at 1:30 am on Tuesday.

The product presently dispenses at N168, following the decision of the Petroleum Products Marketing Company to increase the ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November at the depots.

Ngige said the new price slash is a product of a joint committee of NNPC and labour representatives, which looked into ways of cutting costs.

The minister said a technical committee has been set up to ensure price stability in the industry and will report back to the larger house on January 25, to appraise the market forces and other things that would ensure stability in the industry.

His words, “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.”

Ngige said the price reduction became necessary to suspend deregulation because it did not affect the price of crude oil but on areas where the NNPC as the main importer had agreed that it could cut costs like freight and demurrage costs.

An agreement on electricity tariff reduction would be reached in the next meeting date of January 25 to enable the special committee dealing with complaints to conclude their deliberations.

Meanwhile, the President of the Nigeria Labour Congress, Mr Ayuba Wabba, acknowledged the position of the minister by stating that the agreement was reached by both sides.

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