FG Further Reduces Price of Petrol to N123.50 Per Litre

By Dipo Olowookere

The federal government on Tuesday night announced a further reduction in the price of Premium Motor Spirit (PMS) commonly called petrol.

About two weeks ago, the government, through the Petroleum Products Pricing Regulatory Agency (PPPRA), had first slashed price of the essential commodity to N125 per litre from N145 per litre.

In its announcement last night, the agency said after reviewing the market, it came to the conclusion that Nigerians should be paying lesser for the product. Consequently, the price was further cut by N1.50 to N123.50 per litre.

It was also hinted that the present price could be further reviewed if the market parameters forces such to happen.

“PPPRA, in line with the government approval for a monthly review of Premium Motor Spirit (PMS) pump price, hereby announces Guiding PMS pump price of N123.50 per litre.

“The Guiding price, which becomes effective April 1, 2020, shall apply at all retail outlets nationwide for the month of April 2020.

“PPPRA and other relevant regulatory agencies shall continue to monitor compliance to extant regulations for a sustainable downstream petroleum sector.

“Members of the public and all oil marketing companies are to be guided accordingly,” the statement signed by the Executive Secretary of PPPRA, Mr Abdulkadir Saidu, said.

Recall that recently, Nigeria’s main opposition party, the Peoples Democratic Party (PDP), asked the ruling All Progressives Congress (APC)-led government of President Muhammadu Buhari to further reduce the price of fuel.

The PDP said this was because the price of crude oil at the global market has fallen by over 50 percent of the price it used to sell when the pump price of N145 per litre was fixed by this present government after assuming office in May 2015, when the price was then N85 per litre.

Since the outbreak of coronavirus this year, crude oil has crashed and as at yesterday, the Brent crude, under which Nigeria’s crude is categorised, traded below $30 per barrel ($25.82 per barrel).

In fact, Nigeria’s Bonny Light traded on Tuesday at $21.23 per barrel, while the Brass River and the Qua Iboe went for $24.97 per barrel each at the international crude oil market.