The Federal Government of Nigeria on Wednesday 18th March 2020, announced the reduction in the pump price of Petrol to N125 per litre.
This new pump price comes after the international crude oil price witnessed it’s heaviest fall in 18years, selling for $26 per barrel.
In a statement released by Mele K. Kyari who is the Group Managing Director of NNPC, said effective from 19th March 2020, NNPC Ex-Coastal price for PMS will be reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre.
The NNPC Boss said these reductions will therefore translate to N125/litre retail pump price.
“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,” he added.
The international crude oil prices took a huge plunge on Wednesday 18th March 2020, following the price war between Saudi Arabia and Russia, and most importantly the slow in demand due to the spread of the novel Coronavirus that has crumbled virtually all economic activities around the world.
If the oil price takes another fall, there’s no doubt that a country such as Nigerians that rely heavily on crude revenue will likely fall back into recession.