After a meeting that lasted for at least five hours, the Federal Government has caved in to demand by the organised labour by slashing the pump price of petrol by N5 to N162.44 per litre.

According to Minister of Labour and Employment, Chris Ngige the new price template will come into effect as from Monday, December 14.

The minister, after the meeting which ended in the early hours of Tuesday, noted that the price reduction is not meant to suspend deregulation because it did not affect the price of crude oil but on areas where the Nigerian National Petroleum Corporation (NNPC) as the main importer has agreed that it cut cost like frieght cost and demurrage.

Read also: NNPC opens bid for 2021 Crude Oil Contracts

Related News

He said the new price slash was a product of a joint committee of NNPC and labour representatives who looked into ways of cutting costs.

In Africa’s biggest oil producing country, petrol currently sells at N168, following the decision of the Petroleum Products Marketing Company (PPMC) to increase the ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November.

Concerning electricity tariff, NNPC and Labour unions agreed to wait till next meeting date of January 25 to enable the special committee dealing with complaints to conclude their deliberations.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy. He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp