Minister of State for Petroleum Resources, Chief Timipre Sylva has issued a statement regarding the reduction of fuel price.
He stated that the decline in oil price on the global market prompted the decision of the Federal Government to reduce the price of Premium Motor Spirit (PMS) popularly called Petrol from N145.
Although Sylva did not disclose the new price, Tolu Ogunlesi, spokesman to the President revealed petrol will be sold for N125 henceforth.
“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.
“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.
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“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 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 a salutary effect on the economy, provide relief to Nigerians and will provide a framework for sustainable supply of PMS to our country.
“The Ministry of Petroleum Resources will continue to encourage the use of Compressed Natural Gas to complement PMS utilization as transport fuel.”