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Federal Government reviews petrol pump price from N145 to N125, citing falling crude oil prices globally
PRESIDENT Muhammadu Buhari approved the reduction of the pump price of Premium Motor Spirit, PMS, popularly known as petrol from N145 to N125 to reflect the declining price of crude oil globally.
This was announced after the Federal Executive Council, FEC, meeting held at the Presidential Villa in Abuja, by the Minister of State on Petroleum Resources, Timipre Sylva in a statement.
He cited the drop in the price of crude oil at the global market leading to the reduced open market price of imported petrol below the official pump price of N145 per litre.
“President Buhari 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,” he said.
Data obtained from the Petroleum Products Pricing Regulatory Agency, PPPRA, showed that the landing cost of petrol was N64.32 per litre indicating a steep decline in the landing cost of a litre of petrol since the outbreak of the “dreaded” Coronavirus.
Based on PPPRA initial projection on March 11, the Expected Open Market Price, EOMP, for a litre of petrol was N112.26 while the ex-depot price was N125.63.
Sylva stated that the measure taken by the Federal Government to reduce the price would benefit citizens of the country and balance the market economics.
“The PPPRA 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,” he said.
Brent Crude Nigeria’s oil equivalent currently sells for $30.85 per barrel which is below the $57 per barrel benchmark for the 2020 fiscal budget.
The Nigerian National Petroleum Corporation, NNPC, which is currently the sole importer of petrol into the country subsidises the consumption of petrol initially pegged at N145 per litre.