The Federal Government of Nigeria on Wednesday, slashed the pump price of petrol from N145 to N125.
The decision was taken at the Federal Executive Council meeting on Wednesday, against the backdrop of the crash in crude price, now trading below $30 a barrel.
The Minister of state for petroleum resources, Timipre Sylva, made the announcement on behalf of President Muhammadu Buhari.
The Minister said that already he had met with members of the organized Labour in the oil and gas sector before proceeding to make the formal announcement for the price adjustment.
He said that the organized labour was happy with the reduction in petroleum pump price.
Speaking with journalists after the session, he said the new price would take “immediate effect”.
“Compliance to the new price regime by petroleum marketers will be enforced by the NNPC and the PPPRA. The NNPC will be ordered to adjust the pump price of the fuel immediately.” He said.
“The pump prices of diesel and kerosene would also be reduced. NNPC would roll out all the new prices soon.” He added.
The NNPC Group managing director, Mele Kyari, promptly issued a statement, saying the new price regime will begin 19 March.
“In compliance with the directives of the Honourable Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.
“Effective 19th 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 from N133.28/litre to N113.28/litre.
It was reliably gathered that the outbreak of COVID-19, has made the international crude oil price to crash from $60 to $30, causing fear of a possible economic crisis.