Indications are that the federal government in line with the collapse of international market oil prices has approved a reduction in the pump price of petrol from N145 to N125. This implies a N20 drop per litre of fuel which could go a long way to cushion the effect of rising inflation, economic crunch and the ravaging COVID 19 in the country and around the globe.
President Muhammadu Buhari gave the hint of the reduction from N145 per liter to about N125. It was gathered that the approval followed the presentation by Timipre Sylva, minister of state for petroleum resources, to the Federal Executive Council, FEC, on the need to reduce the pump price, following the global fall in oil price. The magazine also gathered that going forward, the federal government would allow the international price of crude oil to determine the prices of petroleum products in Nigeria.
As the spread of COVID-19 continues, the international crude oil price has slumped from $60 per barrel to $28 per barrel, causing fear of a possible economic crisis in many oil-producing countries, including Nigeria. At the time of filing this report, Sylva is meeting with members of the organised Labour in the oil and gas sector before proceeding to make the formal announcement for the price adjustment.