FG Slashes Petrol Price By N10 as Oil Plunges

The Federal Government on Sunday announced the reduction of the fuel price of petrol from N97 per litre to N87 per litre.

The Minister of Petroleum Resources, Diezani Alison-Madueke, said at a press conference at the presidential villa, Abuja, that the new price regime would take effect immediately.

Mrs. Alison-Madueke said the N10 reduction in fuel price was necessitated by the reduction in crude oil prices in the international market.

She said: “I will like to announce the reduction in the price of Premium Motor Spirit by N10. Therefore, the reduction would be from N97 per litre to N87 per litre and this would be effective from midnight Sunday, January 18, 2015. In line with this I have directed the Petroleum Products Pricing Regulatory Agency, PPPRA, and the Directorate of Petroleum Resources to ensure that there is strict adherence of this regime as it takes effect from midnight Sunday, January 18. I do hope that the entire country will benefit immensely from this reduction of the pump price.”

The price of petroleum products was fixed at N97 in January 2012 after the administration made an abortive move for the full deregulation of the downstream sector which initially saw petrol prices rocket to more than N140 per litre. The move was challenged by a general uprising across the country led by the Occupy Nigeria movement which organised city shutdowns across some of the major cities in the country.

The new price is a reversal of government’s policy on the matter, especially considering the comments by the Minister of Finance, Ngozi Okonjo-Iweal.

Following the call from various quarters that the pump price of the product be reduced to reflect the price of crude in the international market, Okonjo-Iweala, had insisted on December 17 that Nigeria would  not reduce the pump price of fuel despite falling oil prices, until the revenue crisis occasioned by the dwindling oil rates is over.Mrs. Okonjo-Iweala said at the time that the decision to review fuel price either upwards or downwards would only be taken after the current crisis in global oil prices had been settled.

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