As FG, Labour leaders agree on price reduction to N162.44/litre
The pump price of Premium Motor Spirit, popularly known as petrol, may hit N180 per litre this month, according to marketers, as oil prices extended their rally on Monday, with Brent crude trading near $50 per barrel.
Brent, the international oil benchmark, has risen by more than 15 per cent since November 13 when the pump price of petrol was adjusted in the country. It stood at $49.39 per barrel on Monday.
The Minister of State for Petroleum Resources, Timipre Sylva, had said in September that the Federal Government had stepped back in fixing the price of petrol, adding that market forces and crude oil price would determine the cost of the product.
The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, (IPMAN), Mike Osatuyi, said fuel prices might increase before the end of December, considering the current realities in the market. Osatuyi, in a telephone interview with newsmen on Monday, said petrol price could reach N200 per litre if oil price crossed the $50 per barrel mark.
This is coming as the Federal Government announced a reduction in the petrol pump price from N168 to N162.44 per litre, with effect from December 14. The product presently dispenses at N168.
The Minister of Labour and Employment, Dr. Chris Ngige, disclosed this at the end of a meeting with Labour leaders yesterday.
The minister said the new price slash was a product of a joint committee of NNPC and Labour representatives, which looked into ways of cutting costs, adding that a technical committee has been set up to ensure price stability in the industry.
The Federal Government removed petrol subsidy in March this year after reducing the pump price of petrol to N125 per litre from N145 on the back of the sharp drop in crude oil prices. The price reduction lasted till June.
Nigerians have seen increases in the pump prices of petrol four times in the past five months, rising from N121.50N123.50 per litre in June to N140.80-N143.80 in July, N148-N150 in August, N158-N162 in September and N163-N170 in November.
