The Federal Government has approved the reduction in pump price of premium motor spirit (PMS) popularly known as petrol from N145 per litre to about N125 with immediate effect.
The Minister of State for Petroleum Resources, Timipre Sylva, announced this in a statement issued on Wednesday.
The reduction, it was gathered, followed the presentation of the issue by Mr. Sylva to the meeting of Federal Executive Council (FEC) chaired by President Muhammadu Buhari.
The approval followed the fall in crude oil prices from $60, which is now currently oscillating between $29 and $30.
Sylva said President Buhari had approved the reduction so that Nigerians can benefit from a direct effect of crash in global oil prices.
Daily Trust gathered that the federal government would from now allow the international price of crude oil to determine the prices of the product in the country.
The minister further noted that the price reduction would also affect other petroleum products, including diesel and kerosene, etc.
Last Friday, the Minister of State, Petroleum Resources had said that the committee established to assess the impact of COVID-19 on the economy was still consulting and following the development when asked whether the government was considering the option of reducing the price of Premium Motor Spirit (PMS) because of the drop in the crude oil price.
Sylva said: “Of course, usually, the product prices follow the crude oil price. But we are still consulting. We’ll get back to you, please, be patient.”