The Nigerian federal government has announced a reduction in the pump price of premium motor spirit, also known as petrol to N162.44 per litre from N168 per litre.
The new price is effective from December 14, according to the Minister of Labour and Employment, Dr Chris Ngige, who disclosed this at the end of a meeting with labour leaders, on Tuesday.
After the meeting which began around 9:00 p.m. on Monday and ended at 1:30 a.m. on Tuesday, Ngige, said a technical committee has been set up to ensure price stability in the industry
Petrol, which currently sells at N168, after the Petroleum Products Marketing Company (PPMC), a government agency regulating the sector increased the ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November.
As things operate in the sector, the ex-depot price is the amount at which perrol is sold by the PPMC to marketers at the depots.
Further to government’s plans at regulating the price, Ngige said that a committee, which will report back to the larger house on January 25, 2021 will evaluate the market forces and other things that would ensure stability in the industry.
At the labour meeting with the minister, the union and government authorities, both sides, however, agreed to wait till the next meeting date on January 25, to assess the increase in electricity tariff, to enable the special committee dealing with complaints to conclude their deliberations.
The President of the Nigeria Labour Congress, Mr Ayuba Wabba, corroborating the position of the minister, said that the agreement was reached by both sides.
“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,” Ngige said.
The minister of labour explained government was not planning to suspend deregulation with the price reduction as it did not affect the price of crude oil.
He said it only affected the areas where the Nigerian National Petroleum Corporation (NNPC) as the main importer had agreed to cut costs like freight and demurrage charges.
Ngige, said the new price slash was a product of a joint committee of NNPC and labour representatives, which assessed situations and found ways of cutting costs.