President Muhammadu Buhari has approved the reduction in pump price of premium motor spirit, PMS, from N145 per liter to about N125, the State Minister for Petroleum Resources, Timipre Sylva disclosed.
The minister, in a statement signed on Wednesday, said Petroleum Products Pricing Regulatory Agency, PPPRA, should modulate pricing in accordance with prevailing market dynamics.
“The drop in crude oil prices has lowered the expected open market price of imported petrol price below the official pump price of N145 per litre,” the statement read.
“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 Nigerian National Petroleum Corporation (NNPC), to reduce the ex-coastal and ex-depot prices of PMS to reflect current market realities.
“Also, the 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.”
Recall that the minister had last week said the government was in consultation with relevant stakeholders on the possibility of reducing the price following the crash in crude oil prices in the international market.