Federal Government, early Tuesday morning, announced a reduction in the pump price of premium motor spirit, otherwise known as petrol, from N168 to N162.44 per litre with effect from December 14.
Minister of Labour and Employment, Dr Chris Ngige, announced this at the end of a meeting with labour leaders, which began around 9 pm on Monday and ended at 1:30 am on Tuesday.
Petrol currently sells at N168, following November’s increase of the ex-depot price of petrol by the Petroleum Products Marketing Company from N147.67 per litre to N155.17 per litre in November.
Ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots.
Ngige also announced that a technical committee has been set up to ensure price stability in the industry.
The minister stated that the committee, which will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry.
“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,” he said.
He explained that the price reduction was not meant to suspend deregulation because it did not affect the price of crude oil but on areas where the NNPC as the main importer had agreed that it could cut costs like freight and demurrage costs.
Ngige said the new price reduction was a product of a joint committee of NNPC and labour representatives, which looked into ways of cutting costs.
Regarding electricity tariff, FG and labour agreed to wait till the next meeting date on January 25 to enable the special committee dealing with complaints to conclude their deliberations.
NLC President, Mr Ayuba Wabba, corroborated the minister’s position, saying that the agreement was reached by both sides.