The Federal Government has mandated the NNPC to set the price of fuel to fit the global market realities .
The decision was taken during the Federal Executive Council (FEC) meeting, the new pump price of petrol has been fixed to 125 naira per liter
The President ordered that the adjustment takes effect immediately.
Giving the directive on behalf of the President, the minister of state for petroleum,Mr Timipre Sylva informed newsmen that compliance by petroleum marketers is to be enforced by the NNPC and the PPPRA.
Mr Sylva, the minister of state for petroleum resources noted that the price slash will affect all products, adding that their prices are also to be set by the PPPRA and the NNPC.He further revealed that the ministry is also adopting a price modulation mechanism so the price of petroleum products can be regulated as the market dictates.
According to the minister, it is believed that this measure will have an effect on the economy, providing relief to Nigerians and will provide a framework for the sustainable supply of PMS to Nigeria.
He assured that the Ministry of Petroleum Resources will continue to encourage the use of compressed natural gas to complement PMS utilization as a transport fuel.
Mr Sylva had last week said the government was in consultation with relevant stakeholders on the possibility of reducing the price following the crash in crude oil prices in the international market.
Following the outbreak of the coronavirus, the prices of crude oil globally have witnessed sharp deeps.
