NewsOne Nigeria understands that President Buhari has approved the reduction in the pump price of Premium Motor Spirit (PMS) from N145 per litre to about N130.
A report on The Nation newspaper quoted Presidency sources to have hinted that the approval followed a presentation by the minister of state petroleum resources Timipre Sylva to the Federal Executive Council (FEC), on Wednesday, March 18.
According to the report, sources claimed that the Minister briefed the council on the need to reduce the pump price following the global fall in oil price. It was reliably gathered that the outbreak of the deadly coronavirus (COVID-19), has made the international crude oil price to crash from $60 to $30, causing fear of a possible economic crisis.
The newspaper quoted sources to have said that going forward, the government would allow the international price of crude to determine the prices of the product in Nigeria.
It added that the Minister of State, Petroleum Resources according to unconfirmed information has scheduled to meet with members of the organized Labour in the oil and gas sector before proceeding to make the formal announcement for the price adjustment.
Meanwhile, NewsOne Nigeria reports that the decision by the President to reduce the price of petrol in Nigeria is coming barely 24 hours after a former Vice President and the 2019 Presidential candidate of the opposition Peoples Democratic Party (PDP), Atiku Abubakar, advised President Buhari to reduce the pump price.
“As the landing cost of Premium Motor Spirit, also known as petrol, has reduced significantly, it is strongly recommended that the government should not absorb the savings, but should pass it on to the Nigerian people by way of reducing the pump price of PMS to reflect the current prevailing market costs,” Atiku had said.
Nigeria imports most of it’s refined oil and the official price of Petrol across Nigeria is N145 per litre. The effects of the Coronavirus has, however, affected the price of oil on the international market with prices crashing to below $30 from a two month high of $60 per barrel.