The Federal Government has announced a reduction in the pump price of Premium Motor Spirit (PMS) known as petrol from N168 to N162.44 per litre with effect from Monday, December 14.
Disclosing this in Abuja on Tuesday, Dr Chris Ngige, the Minister of Labour and Employment, said the price reduction was not meant to suspend deregulation as it did not affect the price of crude oil.
He spoke at the end of a closed-door meeting with the organised labour on the raise of petrol from N160 per litre to N170 and the increase in electricity tariff last month.
Ngige told journalists: “Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC) which is the major importer and marketers of petroleum product and customers have agreed that there will be a slide down of the pump price of PMS.
“The price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week from today.’’
He, however, said that the NNPC as the main importer has agreed that it would cut costs such as freight cost and demurrage.
According to Ngige, the new price is a product of a joint committee of NNPC and labour representatives who looked into ways of cutting costs.
On the controversial hike in electricity tariffs by DISCOs, the minister also said that government and labour have agreed to wait until their next meeting on Jan. 25, 2021.
“This is to enable the special committee dealing with complaints to conclude their deliberations.’’
Commenting on the meeting, Mr Ayuba Wabba, the President, Nigeria Labour Congress (NLC), described it as fruitful and that the Federal Government had agreed to a reduction in the price of petrol announced last November.