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Buhari Approves Drop In Petrol Pump Price To N125 …NNPC, PPPRA Confirm Fuel Price Reduction
President Muhammadu Buhari has approved the reduction in the pump price of Premium Motor Spirit (PMS) from N145 per litre to N125.
The reduction was as a result of the slump in the international crude oil price from $60 to $30, causing fear of a possible economic crisis.
The approval followed a presentation by Minister of State for Petroleum Resources, Chief Timipre Sylva to the Federal Executive Council (FEC), yesterday.
The minister briefed the council on the need to reduce the pump price following the global fall in oil price.
The minister said that already he had met with members of the organized labour in the oil and gas sector before proceeding to make the formal announcement for the price adjustment.
He said that the organized labour was happy with the reduction in petroleum pump price.
A statement by the minister read thus: “The drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per liter.
“Therefore, Mr. President has approved that Nigerians should benefit from the reduction in the price of PMS which is a direct effect of the crash in global crude oil prices.
“In view of this situation, based on the price modulation template approved in 2015, the Federal Government is directing the Nigerian National Petroleum Corporation (NNPC), to reduce the ex-coastal and ex-depot prices of PMS to reflect current market realities.
“Also, the PPPRA shall subsequently issue a monthly guide to NNPC and marketers on the appropriate 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.
“It is believed that this measure will have a salutary effect on the economy, provide relief to Nigerians and would provide a framework for a sustainable supply of PMS to our country.
“The Ministry of Petroleum Resources will continue to encourage the use of compressed natural gas to complement PMS utilization as a transport fuel.”
It was reliably gathered that the outbreak of COVID-19, has made the international crude oil price to crash from $60 to $30, causing fear of a possible economic crisis.
He said the new price regime takes effect immediately and that the NNPC and PPPRA will take care of the implementation.
Responding to the president’s directive, the Nigeria National Petroleum Corporation (NNPC), yesterday, announced that it had reviewed its ex-coastal, ex-depot and NNPC retail pump prices.
The Group Managing Director, NNPC, Mele Kyari, confirmed this in a statement he personally signed yesterday evening.
The release made available to newsmen, noted that the development was compliance with the directives of the Minister of State for Petroleum Resources, Chief Timipre Sylva on PMS pricing.
Kyari noted that effective March 19, 2020, NNPC, ex-coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre.
Similarly, ex-depot price is reduced from N133.28/litre to N113.28/litre.
He said these reductions will, therefore, translate to N125/litre retail pump price.
Kyari added that despite “the obvious cost implication of this immediate adjustment to the corporation, NNPC is delighted to effect this massive reduction of N20/litre for the benefit of all Nigerians.
“Accordingly, all NNPC retail stations nationwide have been directed to change the retail pump price to N125/litre”, the statement concluded.
Meanwhile, the Minister of State, Petroleum Resources, according to sources, has scheduled to meet with members of the organized labour in the oil and gas sector before proceeding to make an announcement.
However, the Federal Government has been told to suspend its plans to sell its stakes in Joint Venture oil assets until the situation in the international crude oil market and global economy improves.
Addressing newsmen in Abuja on its forthcoming 2020 Oloibiri Lecture and Energy Forum Series, Chairman of the Society of Petroleum Engineers (SPE), Nigerian Council, Mr. Joe Nwakwue, disclosed that the decision of the government to sell its joint venture stakes was the right one, noting, however, that it should not proceed with the sale until a future date.
According to him, with the current declining price of crude oil in the international market, the government would not get the fair value from the assets if it chooses to proceed with the sale within this period of high volatility in the crude oil market.
In addition, Nwakwue called for clear policy from the Federal Government as it relates to the oil and gas sector, as this is critical to attracting the much-needed investment in the petroleum industry.
For instance, he blamed the divestment of international oil companies from the Nigerian downstream petroleum industry on lack of clarity in policies and on government’s participation in the sector.
According to him, the reason why asset disposal is rampant in the downstream sector was because it is impossible for a private sector player to compete against a state-owned entity.
He, however, noted that the international oil companies’ divestment from the downstream sector was not a signal of loss of confidence in the sector, noting that if the role of the Nigerian National Petroleum Corporation (NNPC) was reduced in the market today, a number of multinationals would return to the sector.
Nwakwue said, “The disposal from the downstream sector is because it is difficult to compete against a state-owned entity. So, why would you create a situation where the NNPC becomes a major supplier of the market and you expect those entities to exist and continue to compete with an NNPC? It does not.
“No sensible investor goes to compete against a state-owned entity, because you will not win. This is because the state-owned entity has all the power and strength of the state behind it. You cannot win. Your best bet is to partner with the entity.”
He further disclosed that the inability of the country to fix its refineries was more as a result of institutional challenges than technical challenges.
He noted that the fact that the country was unable to revamp the refineries after several years of dilapidation was a reflection of the failure of the state to effectively manage its assets.
Nwakwue explained that the refineries can be revamped, adding that the problems of the facilities were not technical but institutional.
He said, “Running refineries is not rocket science. Refineries are run everywhere in the world. I had worked in a company whose refinery built in 1932, was still running till today.
“That we cannot run the refineries here have more to do with institutional challenges than technical challenges. We can see that private refineries are coming and they would be run. It is not that we cannot run refineries, Nigeria can run refineries.
The Administrator of Rivers State, Retired Vice Admiral Ibok-Ete Ekwe Ibas, has assured the commitment of Rivers State government to workers’s welfare and industrial harmony in Rivers State.
The Sole Administrator gave the assurance after meeting with leadership of organized labour unions at the Government House, Port Harcourt on Wednesday.
Ibas reaffirmed government’s policy of prompt payment of salaries and pensions to workers and retirees, stating that all local government employees are not receiving the approved minimum wage.
He disclosed that approval has been given for payment of newly employed staff at Rivers State University Teaching Hospital and the Judiciary, while medical workers in Local Government Areas will now receive correct wages.
Ibas explained that, Government is reviewing implementation challenges of the Contributory Pension Scheme ahead of the July 2025 deadline, adding that Intervention buses have been reintroduced to ease workers’ transportation ,with plans to expand the fleet.
He said specialized leadership training for top civil servants will commence within two weeks, while due consideration is being given to implementing the N32,000 consequential adjustment for pensioners and clearing outstanding gratuities.
Ibas commended Rivers State workers for their dedication to service and called for sustained partnership with labour unions to maintain industrial peace.
“This administration recognizes workers as critical partners in development. We remain committed to addressing your legitimate concerns within available resources,” he stated.
The State NLC Chairman, Comrade Alex Agwanwor, thanked the Administrator for the steps taken so far with regard to workers welfare while appreciating his disposition towards alleviating the transportation problem faced by workers.
He also expressed appreciation for the government’s openness to dialogue and pledged continued cooperation towards achieving mutual goals.
The Rivers State Government assured all workers of its unwavering commitment to their welfare and called for continued dedication to service delivery for the collective progress of our dear State.
The Nigeria Labour Congress (NLC), Rivers Council, has called for policies that will improve the economic situation of the country in order to ensure enhanced living standard for workers.
The State Chairman, Mr Alex Agwanwor, made the remark on behalf of the unions affiliated to Labour Congress during the 2025 workers day celebration in Port Harcourt, yesterday.
Agwanwor highlighted the demands of the Unions which included the immediate payment of pension arrears, implementation of the N32,000 minimum wage for pensioners, and payment of gratuities and death benefits without further delay.
“We are calling for the regulation and protection of e-hailing drivers, implementation of increments and promotions, and resolution of long-standing issues in the polytechnic sector,” he said.
Agwanwor on behalf of the unions appealed to President Bola Tinubu to reinstate the democratically elected Governor, Deputy Governor, and members of the Rivers State House of Assembly.
He stressed the importance of democratic governance and good working relationship with elected representatives.
According to him, the unions expressed disappointment over the imposition of taxes, increase in electricity tariff, and high cost of goods and services, which have further worsened the plight of workers.
“We urge the federal government to take measures to alleviate the suffering of citizens,” he said.
Vice-President Kashim Shettima says President Bola Tinubu is committed to unlocking Nigeria’s full potential and position the country as a leading force on the African continent.
Shettima stated this when he hosted a delegation from the Hertie School of Governance, Berlin, led by its Senior Fellow, Dr Rolf Alter, at the Presidential Villa in Abuja last Wednesday.
He said Nigeria was actively seeking expertise from the global best institutions to enhance policy formulation and implementation, particularly in human capital development.
The Vice-President noted that President Tinubu was determined to elevate Nigeria to its rightful position as a leading force in Africa.
“The current crop of leadership in Nigeria under President Bola Ahmed Tinubu is ready and willing to unleash the full potential of the Nigerian nation on the African continent.
” We are laying the groundwork through strategic reforms, and at the heart of it, is human capital development.”
He described the Hertie School as a valuable partner in the journey.
According to him, Hertie School of Governance, Berlin, has track record and institutional knowledge to add value to our policy formulation and delivery, especially in this disruptive age.
Shettima reiterated the government’s priority on upskilling Nigerians, saying ” skills are very important, and with our Human Capital Development (HCD) 2.0 programme.
“We are in a position to unleash the full potential of the Nigerian people by enhancing their capital skills.”
The Vice-President acknowledged the vital support of international development partners in that effort.
” I want to thank the World Bank, the European Union, the Bill and Melinda Gates Foundation, and all our partners in that drive to add value to the Nigerian nation,” he maintained.
The Vice-President said human capital development was both an economic imperative and a social necessity.
Shettima assured the delegation of the government’s readiness to deepen cooperation.
” We need the skills and the capacity from your school. The world is now knowledge-driven.
“I wish to implore you to have a very warm and robust partnership with the government and people of Nigeria.”
Shettima further explained recent economic decisions of the government, including fuel subsidy removal and foreign exchange reforms.
“The removal of fuel subsidy, the unification of the exchange rate regime and the revolution in the energy sector are all painful processes, but at the end of the day, the Nigerian people will laugh last.
“President Tinubu is a very modern leader who is willing to take far-reaching, courageous decisions to reposition the Nigerian economy,” he added.
Earlier, Alter, congratulated the Tinubu administration for the successful launch and implementation of the Human Capital Development (HCD) strategy.
The group leader described the development as ambitious and targeted towards the improvement of the lives of the citizens.
He expressed satisfaction with the outcome of his engagements since arriving in the country.
He applauded the zeal, commitment, energy and goodwill observed among stakeholders in the implementation of Nigeria’s HCD programme.
Alter said the Hertie School of Governance would work closely with authorities in Nigeria across different levels to deliver programmes specifically designed to address the unique needs of the country.
He, however, stressed the need for government officials at different levels to be agile and amenable to the dynamics of the evolving world, particularly as Nigeria attempted to successfully accelerate its human capital development aspirations.