A reduction in the pump price of premium motor spirit (PMS) has been announced by the Federal Government.
PMS will now sell at N162.44 per litre as against N168.
The new price takes effect from December 14.
The new price was announced by the Minister of Labour and Employment, Dr Chris Ngige.
Ngige disclosed the new price at the end of a meeting with labour leaders which began around 9: pm on Monday and ended at 1:30 am on Tuesday.
He said, “Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC) 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.”
Recall that the Petroleum Products Marketing Company (PPMC) increased the 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.
According to the Minister, a technical committee has been set up to ensure price stability in the industry.
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.
Both parties have scheduled another meeting for January 25, to enable them discuss electricity tariff and allow 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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