The Federal Government has announced a reduction in the pump price of petrol from N168 to N162.44 per litre.
According to the Minister of Labour and Employment, Chris Ngige, a technical committee has been set up to ensure there is stability in the price of petrol.
He said: “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.
“A technical committee has been set up to ensure price stability in the industry. These committees, which will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry.”
He stressed that the price reduction was meant to look at the angles where NNPC had agreed to cut costs and not suspend deregulation activities as it doesn’t affect the price of crude oil.
While corroborating the announcement, the president of Nigeria Labour Congress(NLC), Ayuba Wabba said the new price slash was a product of a joint committee of NNPC and labour representatives.
Recall that few months ago, Despite the largely unchanged international crude oil price, Petroleum Products Marketing Company (PPMC), a subsidiary of NNPC, authorized the increase of the price of petrol at a difference of N7.50 kobo.
It was asserted that the N7 increase in ex-depot price would translate into an increase in pump prices. Which means that Nigerians were expected to buy Petrol at higher prices.
Meanwhile, the Federal Government had removed fuel subsidy to allow the market regulate fuel price in line with international market crude oil price.
It is important to note that the announcement which was made at a meeting with stakeholders will take effect from December 14, 2020.