Petrol price reduction: FG to adopt price modulation mechanism to regulate price of petroleum products
The Federal Government has ordered the NNPC to adjust the price of fuel to reflect global market realities.
According to a briefing from the Federal Executive Council (FEC), the new pump price of petrol is now 125 naira.
The President ordered that the adjustment takes effect immediately.
Giving the directive on behalf of the President, Mr Timipre Sylva told newsmen that compliance by petroleum marketers is to be enforced by the NNPC and the PPPRA.
Mr Sylva, the minister of state for petroleum resources noted that the price slash will affect all products, adding that their prices are also to be set by the PPPRA and the NNPC.
He further revealed that the ministry is also adopting a price modulation mechanism so the price of petroleum products can be regulated as the market dictates.
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 the sustainable supply of PMS to Nigeria.
He assured that the Ministry of Petroleum Resources will continue to encourage the use of compressed natural gas to complement PMS utilization as a transport fuel.
Mr Sylva 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.
Following the outbreak of the coronavirus, the prices of crude oil globally have witnessed sharp deeps.
Brent Crude has been sold for $35.44 per barrel while Bonny Light has been sold at $33.63 dollars per barrel, these values are way below the $57 per barrel benchmark for the 2020 budget.