Federal Government yesterday announced the reduction of the pump price of petrol from N97 per litre to N87 per litre.
Petroleum Resources Minister Diezani Alison-Madueke, said this at a press conference that the new price regime would take effect immediately.
Madueke said the N10 reduction in fuel price was due to the reduction in crude oil prices in the international market.
“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.
“Therefore, with the approval and directive of President Goodluck Jonathan 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 Ninety Seven Naira (=N=97) per litre pump price down to Eighty Seven Naira (=N87=) per litre pump price, effective from twelve (12) midnight Sunday, 18th of January 2015.
“Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Department of Petroleum Resources (DPR) to ensure strict compliance of this price adjustment by all marketing companies. It is my hope that all Nigerians will benefit from this adjustment,” Madueke said.
Meanwhile TUC said a cut in pump prices of fuel and diesel would reduce the effect of the devaluation of naira which was triggered by the slump in global oil prices and oil revenues — on businesses and manufacturing companies.
“ Federal government has refused to reduce the prices of petroleum products even though the price of crude has collapsed in the international market, which was the reason given when it wanted to increase the price of fuel in 2012,” the TUC said — referring to when the government fixed the current fuel price of N97 ($0.58)/litre.