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Thu, Mar

FG Slashes Petroleum Price By N5 Per Litre

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Following an unrelenting pressure from the Organised Labour over hike in the Premium Motor Spirit (PMS) price by the Federal Government last month, it has finally bowed to labour and slashed the price by N5 last night.

The Minister of Labour and Employment, Chris Ngige, disclosed this to newsmen shortly after the meeting with the leadership of the Organised Labour (NLC) and the Trade Union Congress (TUC) at the old Banquet Hall of the State House yesterday, saying the reduction would be from the N168 to N162.44 per litre effective December 14, 2020.

The marathon meeting commenced at 8:55 pm on Monday lasted until 1:27 am Tuesday.

Accordingly, petroleum ex-deport price as formerly referred to by the Petroleum Product Marketing Company (PPMC) is the price at which the product is sold by the PPMC to marketers, locally called deport price was increased from N147.67 to N155.17 per litre in November.

According to the Minister, a technical committee has been put in place to ensure price stability in the oil industry and the committee would report to the larger house come January, 25.
Subsequently, he said there will be an appraisal of the market forces that would ensure a stable oil industry.

In his statement, “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 litre and that the price cut will take effect from next Monday, a week today,”

However, Ngige said the slashing of the price does not translate into abandoning deregulation as it has nothing to do with the price of the crude, but on areas where the NNPC being the main importer has agreed to cut some cost like demurrage and freight.

The Minister told the newsmen that both sides have agreed to wait until the 25th of January when the next meeting will convene to enable the special committee to start entertaining complaints to conclude their deliberation on electricity tariff.

Meanwhile, NLC President, Ayuba Wabba, also corroborated the position of the minister, saying that the agreement was reached by both sides.

 

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