President Muhammadu Buhari has directed the Nigerian National Petroleum Corporation (NNPC) to reduce the price of fuel.
This is following the outbreak of the pandemic COVID-19 which has had a huge and negative impact on crude oil prices.
According to Sylva, the new pump price is N125.
According to a statement issued by the Minister for Petroleum Resources, Timipre Sylva, “Mr President has approved that Nigerians should approve from the reduction in the price of PMS which is a direct effect of the crash in global crude oil prices.”
He stressed that the drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per litre.
The directive issued by the President to the Nigerian National Petroleum Corporation (NNPC) requested for the reduction of the Ex-Coastal and Ex-Depot prices of PMS to reflect current market realities based on the price modulation template approved in 2015.
Meanwhile, Mr Sylva noted that a monthly guide on the appropriate pricing regime will be issued by the Petroleum Products Pricing Regulatory Agency (PPPRA) to NNPC and Marketers.
To this end, NNPC will hence, modulate pricing to meet up with prevailing market dynamics and respond appropriately to any further oil market development.
The petroleum minister urged for the use of Compressed Natural Gas to complement PMS utilization while stating that “It is believed that this measure will have a salutary effect on the economy, provide relief to Nigerians and will provide a framework for sustainable supply of PMS to our country.”