• Friday, February 23, 2024
businessday logo

BusinessDay

FG slashes petrol price further to N123 per litre

Nigeria raises petrol price to N212 per litre

For the second time in two weeks, the Federal Government has reviewed petrol price downward to sell at N123.5 per litre effective April 1, 2020.

The 1.2 per cent cut is N1.5 less than the previous N125 that was approved by the Government on 19th March 2020.

“PPPRA, in line with the Government approval for a monthly review of Premium Motor Spirit (PMS) pump price, hereby announces Guiding PMS pump price of N123.5 per litre,” the Petroleum product pricing Regulatory Agency said on Tuesday.

This price reduction, necessitated by a fall in crude oil price was, however, less than analysts’ expectations.

Read Also: Updated: Petrol price for October to drop to N157 as landing cost falls

“I believe this should still move downward if truthfully reviewed. Crude is less than $20/barrel,” Kunle Odujeru, CEO MyKayEnt Data Services commented in a tweet by PPPRA.

The global Brent crude, a benchmark for determining the prices for purchases of crude oil sold for $22.74/barrel on Tuesday, 0.09 per cent less than the $23/barrel is sold the previous day, as compiled from the data on Bloomberg terminals.

According to the statement signed by Adulkadir Saidu, Executive Secretary, PPPRA, Guiding price which becomes effective Wednesday, shall apply at all retail outlets nationwide for the month of April 2020.

“PPPRA and other relevant regulatory agencies shall continue to monitor compliance to extant regulations for a sustainable downstream petrol sector,” it said.