Nigeria slashes petrol pump price from N125 to N123.50 per litre
On Tuesday, the Federal Government further cut the price of Premium Motor Spirit, PMS, also known as petrol or diesel, from the old price of N125 per litre, to N123.50 per litre, with an effect as of April 1, 2020.
The new level, which would last through April, was coming on the back of a gradual decline in international crude oil prices. In a statement in Abuja on Tuesday night, Mr Abdulkadir Saidu, Executive Secretary of the Petroleum Products Pricing Regulatory Agency, PPPRA, announced that the new price was in line with the Federal Government ‘s consent for a monthly analysis of the petrol price.
He said, “PPPRA, in compliance with the Government’s monthly revs agreement.
Speaking to newsmen in Abuja, PPPRA’s Executive Director, Mr Abdulkadir Saidu, had announced that the agency would conduct a PMS price analysis and announce a new commodity price, April 1, 2020, if the criteria used to determine the current price were changed. He noted that the price broadcast on Wednesday, March 18, 2020, will continue until March 31, 2020 and a new price could come into force after the study, adding that from now on, PPPRA will offer a monthly analysis of the prices of petroleum products.
“The Controlling Price, effective April 1st, 2020, will affect all retail outlets across the country for April 2020.
“PPPRA and other important regulatory agencies will continue to monitor existing regulatory agreements for a sustainable downstream petroleum sector. Members of the Public and all Oil Marketing Firms shall conduct themselves accordingly.
“On March 18, the Federal Government announced that a decrease in fuel prices from N145 per liter to N125 per litre will begin. The PPPRA clarified that as of April 1, there is a possibility of new commodity price management, noting that the current N125 per litre pump price will last until the end of March 2020.
“All NNPC Retail stations nationwide were then directed to raise the retail pump price to N125 / liter.
“There was, however, no mention of price adjustments for kerosine or jet oil, commonly referred to as aviation fuel.
There is no mention of diesel, either.
Since COVID 19 locked China off oil glut has existed, resulting in a reduction in demand for Nigerian light Brent.
China is Nigeria’s largest buyer of oil. Moreover, Europe is currently in lockdown due to the same outbreak, and too many Oil barrels have stayed unsold with gas.