Business
With N125/litre Nigeria may have removed subsidy on petrol price
BY OUR EDITOR
The Federal Government Wednesday announced reduction in pump price of premium motor spirit (PMS), otherwise popularly known as petrol.
From N145/litre, the official price of petrol in Nigeria is now N125, effective Thursday, March 19, 2020.
The Petroleum Products Pricing Regulatory Agency (PPPRA) attributed the reduction to the recent plunge in the price of crude oil and petroleum products occasioned by the outbreak of coronavirus pandemic and slowing global oil demand.
But the government agency whose responsibility it is to regulate the price of petroleum products may have tactically settled the vexed issue of “petrol subsidy” with its statement announcing the lowering of petrol pump price by N20.
It says: “Going forward, PPPRA will continue to monitor trends in market fundamentals and announce a monthly Guiding/Expected Open Market price at the beginning of every month, effective 1st April, 2020.
“It is expected that the new price regime will emplace a more transparent pricing model, stimulate investment growth in the downstream sector and encourage resumption of products importation by Oil Marketing Companies (OMCs), translating to more job creation as many depots and facilities that are presently dormant will become now active.”
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The understanding here is that henceforth the pump price of petrol will be adjusted in line with the prevailing price of crude oil in the market.
This assumption was given credence by the official Federal Government of Nigeria Twitter handle, @NigeriaGov with the following tweet: “The official Price of Petrol in Nigeria is now N125 per Litre. A Price Modulation Mechanism is being introduced, to be managed by the Petroleum Products Pricing Regulatory Agency (PPPRA), to henceforth adjust the price in line with the market price of crude oil.
“The Minister of Petroleum Resources, @HETimipreSylva (Timipre Sylva) made the announcement today (Wednesday) at the Federal Executive Council (FEC) Meeting Press Briefing.
“More details to come from the Petroleum Products Pricing Regulatory Agency (PPPRA).”
See PPPRA statement below:
PMS Pump Price reviewed downward to sell at N125 per litre effective 19th March, 2020. See PPPRA's full statement below. pic.twitter.com/FfCqKyVSeZ
— PPPRA (@PPPRAtweets) March 18, 2020