WED, MARCH 18 2020-theG&BJournal-The Minister of State for Petroleum, Timipre Sylva has directed that the Nigeria National Petroleum Corporation (NNPC) review downwards petrol price.
According to a statement Wednesday by the Minister, the drop in crude oil prices has lowered 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 direct effect of the crash in global crude oil prices.’’
The approval comes on a day crude oil prices fell to below $26 per/b, the lowest recorded since 2003.
‘’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 realities.
‘’Also, the Petroleum Products Pricing Regulatory Agency (PPPRA) shall subsequently issue a monthly guide to NNPC and marketers on the appropriate pricing regime,’’ Sylva said.
PPPRA is directed to modulate pricing in accordance with prevailing market dynamics and respond appropriately to any further oil market development.
According to the Minister, ‘’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 the Ministry of Petroleum Resources will continue to encourage the use of compressed natural gas to complement PMS utilization as transport fuel.
NNPC Group Managing Director, Mele K Kyari has consequently put out a statement to say that with effect from 19 March 2020, NNPC ex-coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/ litre while ex-depot price is reduced fromN133.28/litre to N113.26/litre. The reduction he says translates to N125/litre retail pump price.
‘’Accordingly, all NNPC retail stations nationwide have been directed to change the retail pump price to N125/litre.’’