The Federal Government has announced a reduction in the pump price of premium motor spirit, also known as petrol, from ₦168 to ₦162.44 per liter with effect from December 14.
This was disclosed by the Minister of Labor and Employment, Dr. Chris Ngige, after a meeting with labor leaders which began around 9pm on Monday and ended at 1:30am on Tuesday.
The product is presently dispensed at ₦168, following the decision of the Petroleum Products Marketing Company (PPMC) to increase the ex-depot price of the product from ₦147.67 per liter to ₦155.17 per liter in November.
The ex-depot price is the price at which the product is being sold by the PPMC to the marketers at the depots.
The minister disclosed that a technical committee has been set up to ensure price stability in the industry.
Ngige made it known that the committee will report back to the larger house on January 25 and will appraise the market forces and other things that would ensure stability in the industry.
The minister 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 liter and that the price cut will take effect from next Monday, a week today.”
He 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 main importer, NNPC, had agreed that it could cut costs like freight and demurrage costs.
He added that the new price slash was a result of the joint committee of NNPC and Labor representatives, which is surrounded in a way of cutting costs.
On electricity tariff, both sides agreed to wait till the next meeting date on January 25 to allow the special committee dealing with complains to be done with their deliberations.
On his part, the President of the Nigeria Labor Congress (NLC), Mr. Ayuba Wabba, reiterated the position of the minister, noting that the agreement was reached by both sides.
