The Federal Government has directed the Nigerian National Petroleum
Corporation (NNPC) to reduce the pump prices of Premium Motor Spirit (PMS)
from N145 to N125 per litre to reflect the current market realities.
The Minister of State for Petroleum Resources, Mr Timipre Sylva, confirmed this
development when he addressed State House correspondents on the outcome of
the meeting of the Federal Executive Council (FEC).
The Council meeting was presided over by President Buhari at the Council
Chamber of the Presidential Villa, Abuja.
Sylva disclosed that the reduction in prices would also affect other petroleum
products like Kerosine and diesel.
He said the reduction was in line with the Buhari administration to cushion the
hardships being experienced by Nigerians.
Industry watchers said the unexpected cut in prices of petroleum products was to
reflect the global oil price which in recent times has plummeted. It fell to a 17-
year low on Wednesday with Brent Crude selling for $25 per barrel.
A statement by the Minister in Abuja on Wednesday explained that “the drop in
crude oil price has lowered the expected open market price of imported petrol
below the official pump price of N145 per litre.
“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 NNPC to reduce the Ex-Coastal
and Ex-Depot prices of PMS to reflect current market realities,” he said .
He added 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 effect on the economy, provide relief to
Nigerians and will provide a framework for sustainable supply of PMS to our
country,” he added .
He noted that Ministry of Petroleum Resources would continue to encourage the
use of Compressed Natural Gas to complement PMS utilisation as transportation
fuel.
