The Federal Government yesterday slashed the pump price of petrol, otherwise known as Premium Motor Spirit (PMS) from N97 to N87.
This, according to the Minister of Petroleum, Mrs. Diezani Allison Madueke, who briefed Villa Correspondents, should take effect from 12 midnight of Sunday, 18th January.
She said the reduction became necessary due to the consistent slide in the price of crude at the international market.
She added that the Petroleum Product Price Regulatory Agency (PPPRA) has been directed to effect the new change with immediate effect.
Alison-Madueke, said “As you may be aware, there has been a lot of volatility in price of petroleum product, particularly crude oil over the last few months. Invariably, this has meant that the price of the product in Nigeria has also been greatly impacted.
“It is as a result of this, under the approval and directive of Mr. President and 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 (primium motor spirit) by N10. Therefore, the reduction will be from N97 per liter to N87 per liter effective as of mid-night Sunday the 18th of January 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 18th of January 2015.
I do hope the entire country will benefit immensely from this reduction in the pump price of petroleum.”
Responding to why the government resolved to reduce the price, the minister said “We think is actually time to reduce the price we have been watching very carefully for the last two weeks to ensure that the volatility did not destabilize this particular reduction in price and we think it is safe to implement it at this time.”