Following the drop in crude oil prices, the expected open market price of imported petrol has gone below the official pump price of N145 per litre.
This has prompted President Muhammadu Buhari’s to decide 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, according to a statement by the Petroleum Resources Minister of State Timipre Marlin Sylva.
Mr Sylva stated that “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 also stated that 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 a salutary effect on the economy, provide relief to Nigerians and will provide a framework for sustainable supply of PMS to our country.
“The Ministry of Petroleum Resources will continue to encourage the use of Compressed Natural Gas to complement PMS utilization as transport fuel.”