Why Nigeria reduces pump price of petrol by N5 ─Minister

Alexander Davis | ConsumerConnect

Sequel to further consultations between the Federal Government and the Organised Labour leaders to continue dialogue on recent increases in prices of the Premium Motor Spirit (PMS) otherwise called petrol and electricity tariffs, the former has acceded to the Labour demand by reducing the pump price of petrol by N5.00K.

ConsumerConnect reports though by implication, the new price of a litre of PMS will now be N162.44 in the country, the government said the new price template would come into effect as from Monday, December 14, 2020.

Senator (Dr.) Chris Ngige, Honourable Minister for Labour and Employment, in a media briefing shortly after the meeting with Labour leaders that lasted till midnight Monday, December 7, disclosed that the meeting was fruitful.

Nige said: “Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC), which is the major importer and marketer 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 the price cut will take effect from next Monday, a week today”

The Minister, nonetheless, noted that the petrol 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, has agreed that it cut cost like freight cost and demurrage.

According to him, the new price slash was a product of a joint committee of NNPC and Labour representatives who look into ways of cutting costs.

Ngige stressed that in regard to the aspect of electricity tariffs, both sides agreed to wait till the next meeting date of January 25, 2021, to enable the special committee deal with complaints to conclude their deliberations.

Comrade Ayuba Wabba, President of the Nigeria Labour Congress (NLC), confirmed the position of the minister.

Wabba stated that what the Minister said was the agreement reached by both sides.

Recall that in further consultations, the Federal Government had reconvened the meeting with the Organised Labour leaders Monday to continue dialogue on the recent increases in the pump price of the Premium Motor Spirit (PMS), otherwise known as petrol, and electricity tariffs.

ConsumerConnect reports that following the last meeting two weeks back, the dialogue was suspended to enable the government do further consultations as the Labour leaders insisted on the reversal of the new prices of petrol and electricity tariffs.

Sen. Ngige at the resumed negotiation Monday, in Abuja, had revealed that much of the consultations had been made since the previous meeting.

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