Nigerian National Petroleum Corporation (NNPC) has been directed by the federal government to reduce the ex-coastal and ex-depot prices of PMS to reflect current market realities.
Timipre Sylva, the minister of state for petroleum resources in a statement signed by him revealed that the federal government has directed that Petroleum Products Pricing Regulatory Agency (PPPRA) should modulate pricing in accordance with prevailing market dynamics, TheCable reports.
Recalled it had earlier reported that the federal executive council deliberated on reducing the pump price of petrol at its meeting in Aso Rock.
“The drop in crude oil prices has lowered the expected open market price of imported petrol price below the official pump price of N145 per litre,” the statement read.
“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 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.”
The federal government said the measure will provide relief to Nigerians and provide a framework for a sustainable supply of petrol.
According to data published by the Petroleum Products Pricing Regulatory Agency (PPPRA), the landing cost of petrol was N64.32 per litre as of Monday, March 16 and the expected open market price was N83.69.
Crude oil price dropped to $26, its lowest point in 18 years on Wednesday.
Read official release by Mele K. Kyari, Group Managing Director, NNPC:
PMS PRICE ADJUSTMENT
In compliance with the directives of the Honourable Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.
Effective 19th March 2020, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre.
These reductions will therefore translate to N125/litre retail pump price.
Despite the obvious cost implication of this immediate adjustment to the Corporation, NNPC is delighted to effect this massive reduction of N20/litre for the benefit of all Nigerians.
Accordingly, all NNPC Retail stations nationwide have been directed to change the retail pump price to N125/litre.
Mele K. Kyari
Group Managing Director, NNPC
Abuja – 18th March 2020