The Federal Government has slashed the pump price for petroleum product from N97 to N87 per litre as a result in fall in crude oil price.
Petroleum Minister, Allison Madueke, announced N10 reduction in the price of Premium Motor Spirit (PMS), also known as petrol, from N97 to N87 per litre on Sunday in Abuja in chat with State House correspondent saying it was due to the drop in global crude oil prices.
“As you may be aware, there has been a lot of volatility in the oil market in the past few months and due to this, the importation prices of our petroleum products have been impacted.
‘‘In line with Section 6 Clause 1 of the Petroleum Act, that it is my responsibility as the Minister of Petroleum to announce that there will be a reduction in the pump price of petroleum by N10, therefore the reduction will be from N97 per litre to N87 per litre, effective as of mid-night Sunday, Jan. 18, 2015.
‘‘In line with this I have directed the Petroleum Product Pricing Regulatory Agency and the Directorate of Petroleum Resources to ensure there is strict adherence to this new pricing regime as soon as it takes effect from midnight Sunday Jan. 18, 2015.
“Therefore, with the approval and directive of Mr. President and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as Minister of Petroleum Resources to hereby announce a reduction in the pump price of Petroleum Motor Spirit (Petrol) from the current N97 per litre pump price down to N87 per litre pump price, effective from 12 midnight Sunday,” she said.
‘‘I do hope the entire country will benefit immensely from this reduction in the pump price of petroleum,’’ she said.
The Minister reassured that government would continue to ensure that the volatility in the oil market did not destabilize the reduction in price, saying that ‘‘we think it’s safe to implement it at this time.’’