FG Reduces Petrol Price To N87, Queues May Resurface

It was a shocking and unbeleiveable news to most of Nigerians when federal government last night reduced the pump price of Petroleum Spirit (PMS) from N97 to N87.00 per litre.

Accordingly, the Petroleum Products Price Regulatory Agency (PPPRA) ‎ and the Directorate of Petroleum Resources has been directed to effect the new change with immediate effect, precisely from midnight yesterday.

Minister of Petroleum, Dieziani Alison-Madueke, told journalists that the change was in view of recent reduction in the global price of crude oil.

She 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 (premium motor spirit) by N10; therefore the reduction will be from N97 per litre to N87 per litre effective as of mid-night Sunday, January 18, 2015.

On why the action was taken so suddenly, she said, “We think it 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 destabilise this particular reduction in price and we think it is safe to implement it at this time,” she said.