Don Hails Fuel Pump Price Reduction

A financial expert, Prof. Uche Uwaleke, says the Federal Government’s reduction in the price of fuel will complement the stimulus package announced by the Central Bank of Nigeria (CBN) to reduce the effect of COVID-19.
Uwaleke, of Nasarawa State University, Keffi said this in Lagos, yesterday while reacting to the reduction in the pump price of Premium Motor Spirit (PMS) from N145 to N125 per litre by the Federal Government.
“It, the pump price reduction complements the stimulus packages just announced by the CBN.
“The immediate impact is a reduction in transport costs and possibly food inflation,” Uwaleke said.
The professor, who commended government for the reduction said that if properly implemented, it would lower inflation rate, which stood at 12.20 per cent in February.
He said that lower inflation rate would translate to improved purchasing power and lower cost of living.
According to him, movement of goods and people will lead to increased economic activities, thereby translating to higher Gross Domestic Product.
President Muhammadu Buhari has approved the reduction in the pump price of PMS from N145 to N125 per litre following the crash of crude oil price in the international market.
The Minister of State for Petroleum Resources, Chief Timipre Sylva confirmed this after the meeting of the Federal Executive Council (FEC) presided over by President Buhari, yesterday at the Presidential Villa, Abuja.
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.