The Federal Government of Nigeria has explained why it reduced the price of Petroleum Motor Spirit (PMS).
POLITICS NIGERIA earlier reported that President Muhammadu Buhari approved the reduction of fuel price.
It is not yet sure the exact price that government will peg the pump price, but reports assume it to be around N125 and N130 per litre.
In a circular seen by this newspaper, the Minister of State for Petroleum Resources, Timitre Syla, said the federal government has directed the Nigerian National Petroleum Corporation (NNPC) to reduce the pump price.
“Based on the price modulation template approved in 2015, the Federal Government is directing the Nigerian National Petroleum Corporation (NNPC) to reduce the price.
“The PPPRA shall subsequently issue a monthly guide to NNPC and marketers on the appreciate pricing regime. The agency is further directed to modulate pricing in accordance with prevailing market dynamics and respond appropriately to any further oil market development.”
The minister said this measure will have a solitary effect on the economy, provide relief to Nigerians and would provide a framework for sustainable supply of petrol.
