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Breaking: FG announces reduction in fuel price to N162.44 per litre

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A joint meeting of the Federal Government and the labour unions representatives have agreed to reduce the pump price of petrol from N168 per litre to N162.44 per litre starting December 14, 2020.

The Minister of Labour and Employment, Dr Chris Ngige, disclosed this at the end of a meeting with the labour unions on Tuesday. The meeting began at 9.20 pm on Monday and ended in the early hours of Tuesday.

Ngige said the two sides were not unconcerned with price volatility and to tame this, a technical committee was set up to look into this. He said the committee, which would report back to a larger house on January 25 is charged with coming up with recommendations on how to achieve price stability in the industry.

He said, “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 explained that the price reduction was not meant to suspend deregulation because it did not affect the price of crude oil but on areas where the NNPC as the main importer had agreed that it could cut costs like freight and demurrage costs.

He said the new price slash was a product of a joint committee of NNPC and labour representatives, which looked into ways of cutting costs.

Recall that the current pump price of N168 per litre came about when the Petroleum Products Marketing Company increased ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November.

The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots.

Ngige was non-committal on the contentious issue of increase in electricity tariff saying that the two sides agreed to wait till the next meeting date on January 25 to enable the special committee dealing with complaints to conclude their deliberations.

The President of the Nigeria Labour Congress, Mr Ayuba Wabba, collaborated the position of the minister, saying that the agreement was reached by both sides.

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