FG Slashes Fuel Price To N162.44 Per Litre

A reduction in the pump price of premium motor spirit, otherwise known as petrol, has been announced by the Federal Government, from N168 to N162.44 per litre with effect from December 14.
The Minister of Labour and Employment, Dr Chris Ngige, disclosed this at the end of a meeting with labour leaders which began around 9pm on Monday, and ended at 1:30am, yesterday.
The product presently sells at N168, following the decision of the Petroleum Products Marketing Company (PPMC) to increase the ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November.
The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots.
The minister said a technical committee has been set up to ensure price stability in the industry.
Ngige stated that the committee, which would report back to the larger house on January 25, would appraise the market forces and other things that would ensure stability in the industry.
He said, “Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC) which is the major importer and marketers of petroleum products and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today.”
Ngige explained that the price reduction was not meant to suspend deregulation because it did not affect the price of crude oil but on areas where the NNPC as the main importer had agreed that it could cut costs like freight and demurrage costs.
He said the new price slash was a product of a joint committee of NNPC and labour representatives, which looked into ways of cutting costs.
Ngige said, “They have come down. There is a price now. They are now touring the DISCOS. They are going all over the country. They have been to Lagos. They have been in Ibadan. They are supposed to be in Kano now, but two members of the committee had taken ill and so, they could not continue.”
He, however, assured that the electricity committee would continue after yuletide and report back again on January 25, 2021.
Also speaking on the issue of palliatives, the minister said, “The palliatives have been rolled out and all hands are on deck to see that the workers start getting the effects as quickly as possible.”
He announced plans by the Federal Government to engage many urban workers and give them stipends every month for the next twelve months as part of the conditional cash transfer.
On the aspect of electricity tariff, both sides agreed to wait till the next meeting date on January 25 to enable the special committee dealing with complaints to conclude their deliberations.
Earlier in his remark, the Secretary to the Government of the Federation, Boss Mustapha, lauded the leadership of the organised labour for exhibiting spirit of collective bargaining and negotiation in spite of the demands of their office to cater for the welfare and good of their members.
He said that the overall interest of the nation has not been sacrificed in the negotiations undertaken in the last few months they had to deal with this issue.
Mustapha further said the peaceful resolution of the matter showed that the interest of the nation was fundamental and uppermost in their minds in finding a password to the issues that affect their people.
He also said that the primary responsibility of everyone in the negotiating table was to provide for the well being and good of the Nigerian people.
He commended the steadfastness of leaders of the organised labour to the negotiation, which he described as the hallmark of leadership and commitment to the good of the nation.
The President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, corroborated the position of the minister, saying that the agreement was reached by both sides.
Other members of the Federal Government delegation were the Minister of State, Labour and Employment, Festus Keyamo (SAN); his Petroleum counterpart, Timipre Sylva; the Group Managing Director (GMD), NNPC, Mele Kyari; and the Managing Director of Rural Electrification Agency (REA), Ahmad Salihijo.
President of NLC, Ayuba Wabba and his Trade Union Congress (TUC) counterpart, Quadri Olaleye led the organised labour to the meeting.