The announcement was made at the end of the Federal Executive Council meeting on Wednesday at the Presidential Villa in Abuja.
The Nigerian Government has finally reduced the pump price of petrol to N125 from N145.
The announcement was made at the end of the Federal Executive Council meeting on Wednesday at the Presidential Villa in Abuja.
Consequently, the Nigerian National Petroleum Corporation had been directed to ensure the new price was adhered to by all stakeholders.
In a statement signed by Minister of State for Petroleum Resources, Timipre Sylva, government said Petroleum Products Pricing Regulatory Agency should modulate pricing in accordance with prevailing market dynamics.
The statement reads, “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.
“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 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.”
Earlier, there had been speculation that the new price of petrol could be pegged at N130 per litre but with the latest development, that debate is closed.
The current landing cost of petrol is N64.32 after a barrel of oil in the international market dropped to $27 on Wednesday.
Earlier on Tuesday, a former Vice President of Nigeria, Atiku Abubakar, had called on the administration of President Muhammadu Buhari to reduce the pump price of petrol following the fall of oil cost in the global market.