President Muhammadu Buhari on Wednesday approved cut in price of petroleum product , especially Premium Motor Spirit PMS, to N125, from the current N145.
The 13.7% cut is coming on the backdrop of current fall in crude oil prices.
The NNPC in a statement said 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.
These reductions will therefore translate to N125/litre retail pump price.
BusinessDay gathered from presidency sources that the approval followed presentation by minister of state petroleum resources Timipre Sylva to the Federal Executive Council (FEC), on Wednesday, on the need to reduced the pump price following the global fall in oil price.
At the behest of the spread of Covid19, international crude oil price slumped from $60 to $30, causing fear of a possible economic crisis.
It was gathered that going forward, the government would allow the international price of crude to determine the prices of the product in Nigeria.
BusinessDay gathered that the Minister is currently meeting with members of the organized Labour in the oil and gas sector before proceeding to make the formal announcement for the price adjustment.
President Buhari had on Tuesday assured that his administration will do whatever is possible to reduce the effect of the current hardship on the back of ravaging Corona Virus Pandemic.Accordingly, all NNPC Retail stations nationwide have been directed to change the retail pump price to N125/litre.
