The Federal Government has directed the Nigerian National Petroleum Corporation (NNPC) to reduce the pump price of the Premium Motor Spirit (PMS) also known as petrol to reflect the global oil price changes.
Minister of State for Petroleum Resources, Chief Timipre Sylva disclosed this in a statement in Abuja, on Wednesday.
“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.
