The Federal Government on Wednesday announced a reduction in the pump price of the Premium Motor Spirit (PMS) otherwise known as petrol.
A statement which the Minister of State for Petroleum Resources, Chief Timipre Sylva issued in Abuja did not mention the approved price.
According to him, the Petroleum Products Pricing Regulatory Agency (PPPRA ) would make the new templates known.
It was learnt that PPPRA had pegged the new pump price at N125 per litre.
Sylva, however, in the statement attributed the slash to the decline in the prices of crude oil.
The statement reads : “The drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per litre.
“Therefore, Mr. President has approved 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.
“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.
“Also, 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.”
Additional report from The Nation