The Federal Government of Nigeria on Tuesday announced the reduction in the pump price of premium motor spirit, otherwise known as petrol, to N162.44 from N168 per litre with effect an effective date of December 14.
Dr Chris Ngige, the Minister of Labour and Employment, disclosed this at the end of a meeting with labour leaders which lasted over fours and ended at the early hours of Tuesday.
He that the price reduction was not meant to suspend deregulation because it did not affect the price of crude oil but on areas where the NNPC as the main importer had agreed that it could cut costs like freight and demurrage costs.
In November, Petroleum Products Marketing Company (PPMC) increased the ex-depot price of petrol (price at which the product is sold by the PPMC to marketers at the depots) from N147.67 per litre to N155.17 per litre resulting in the product being sold at N168.
Ngige said that the technical committee which was set to ensure price stability, will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry according to Punch.
He said, “Our discussion was fruitful and the Nigerian National Petroleum Corporation which is the major importer and marketers of petroleum products and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today.”
On the issue of electricity tariff, both sides agreed to wait till the next meeting date on January 25, 2021 to enable the special committee dealing with complaints to conclude their deliberations.
The President of the Nigeria Labour Congress, Mr Ayuba Wabba, collaborated the position of the minister, saying that the agreement was reached by both sides.
By: Ifunanya Ikueze
