In reaction to the Organization of Petroleum Exporting Countries, OPC, cisis that saw competitiveness among member nations that resulted in the collapse of the OPEC regime and the crash of Oil prices, presidency has decided to reduce the pump price of Premium motor spirit to N125 per litre. This is a N20 Naira price reduction by Government. Oil had dropped to $28 per barrel Wednesday.
In a release by the group head, Nigerian National Petroleum Corporation, NNPC, Melee Kyari, he said that this complies with the Directive of the Minister of State for Petroleum, Timipre Sylva. Silva had ordered the reduction of Pump price of petroleum Wednesday.
“Effective 19th March 2020, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre,” Kyari said.
“These reductions will therefore translate to N125/litre retail pump price.
“Despite the obvious cost implication of this immediate adjustment to the Corporation, NNPC is delighted to effect this massive reduction of N20/litre for the benefit of all Nigerians.
“Accordingly, all NNPC Retail stations nationwide have been directed to change the retail pump price to N125/litre.”There was however no mention of kerosine and Jet AI, generally called Aviation fuel. Neither is there a mention of diesel.
There has been oil glut since Covid 19 locked down China, resulting in the reduction of demand for Nigerian light Brent. China is a major buyer of Nigerian crude. Besides, Europe is currently under lockdown due to the same disease, and so many barrels of Oil has remained unsold with gas.
Government have been having series of meetings to find ways out of the logjam.
