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The Federal Government has ordered the Nigerian National Petroleum Corporation (NNPC) to adjust the price of fuel to reflect global market realities, with the price of crude oil at 18-year low globally as a result of the outbreak of Coronavirus disease, otherwise known as COVID-19.
Brent Crude has been sold for $35.44 per barrel while Bonny Light has been sold at $33.63 dollars per barrel, these values are way below the $57 per barrel benchmark for the 2020 budget.
According to a briefing from the Federal Executive Council (FEC) on Wednesday, the new pump price of petrol is now 125 naira.
The President ordered that the adjustment takes immediate effect.
Giving the directive on behalf of the President, the Minister of State for Petroleum Resources, Mr. Timipre Sylva told newsmen that compliance by petroleum marketers is to be enforced by the NNPC and the Petroleum Pump Pricing Regulatory Authority (PPPRA).
Mr. Sylva noted that the price slash will affect all products, adding that their prices are also to be set by the PPPRA and the NNPC.
He further revealed that the ministry is also adopting a price modulation mechanism so that the price of petroleum products can be regulated as the market dictates.
According to the minister, it is believed that this measure will have a salutary effect on the economy, provide relief to Nigerians and will provide a framework for the sustainable supply of PMS to Nigeria.
He assured that the Ministry of Petroleum Resources will continue to encourage the use of compressed natural gas to complement PMS utilization as a transport fuel.
Mr. Sylva had last week said the government was in consultation with relevant stakeholders on the possibility of reducing the price following the crash in crude oil prices in the international market.
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