The Minister of State for Petroleum Resources, Chief Timipre Sylva has expatiated on President Muhammadu Buhari’s approval for the reduction of pump price of PMS, popularly known as petrol.
Valuechain gathered that the reductions, as communicated by the NNPC, will translate to N125 per litre retail pump price.
Chief Sylva said in a statement issued in Abuja today that considering the drop in crude oil prices which has lowered the expected open market price of imported petrol below the official pump price of N145 per litre, Mr. President has said that Nigerians should benefit from the reduction in the price 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 Minister added.
According to him, “the Agency is further directed to modulate pricing in accordance with prevailing market dynamics and respond appropriately to any further oil market development”, adding 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.”
He assured further that the Ministry of Petroleum Resources will continue to encourage the use of Compressed Natural Gas to complement PMS utilization as transport fuel.
