By Adedapo Adesanya
Federal government has disclosed that there’s the possibility of reducing the pump price of petrol following decline in the prices of crude oil at the international market.
During the week, the landing price of the premium motor spirit (PMS) dropped after the price of Brent Crude went down to around $35 per barrel.
Business Post gathered that as at Tuesday, March 10, the landing cost for PMS was N95.16 per litre, according to the Petroleum Products Pricing Regulatory Agency (PPPRA). Additional costs brought the open market price of petrol to N114.53 per litre.
Speaking on Friday, Minister of State for Petroleum Resources, Mr Timipre Sylva, stated in Abuja that the reduction in the landing cost of the product was “a developing issue,” stressing that, “We are still consulting [and] following it closely.”
“Of course, usually, the product prices follow the crude oil price but we are still consulting, we’ll get back to you, please, be patient,” he further said.
Yesterday, Mr Sylva was at the presidential Villa in Aso Rock alongside the Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, and Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN).
The delegation visited President Muhammadu Buhari to submit an interim report on the impact of coronavirus on the economy.
Speaking to the press on the sidelines of the meeting, Mrs Ahmed said that there are mechanisms to ensure that activities of government continue to run.
“What we have been mandated to do is to ensure that the business of government continues to run as much as possible normally, that government agencies are funded but there must be continuous investments in critical infrastructure that would ensure continuous growth and also concentrate on programmes and projects that will enhance employment of our people.
“We are looking at ways and means in which the revenue of government will be stabilized and that we are able to fund the states through the FAAC process at a level that is averagely expected and planned for both the federal as well as the national budget.
“So, as we finish our consultations next week, we will be expecting some approvals and then we will be meeting with you to inform you of the specific approvals that we have been able to obtain from his excellency the President.”
According to the Finance Minister, the federal government has released N285 billion for the implementation of the 2020 budget and $220 million as counterpart funding for railway projects.
It was also revealed that the ministries of transport, Niger Delta and works and housing were said to have received some of the released funds.
The CBN, according to Mr Emefiele, will come up with a mechanism that will make it possible both for the federal and the state governments to be able to conduct their businesses despite reduced prices in crude oil.
