- NNPC Finally Lowers Petrol Pumping Price to N125
The Nigerian National Petroleum Corporation (NNPC) on Wednesday announced it has reduced petrol price from N145 per litre to N125 per litre in accordance with the latest landing cost.
Investors King had reported that the corporation’s total landing cost per litre dropped to N64.32 on Monday following the fall in global oil prices. This reduction led to an adjustment in the Expected Open Market Price (EOMP) to N83.69 per litre.
While the NNPC, the sole importer of petrol, had stuck to the old pricing template since Brent crude oil first plunged by 30 per cent a week ago, the Petroleum Products Pricing Regulatory Agency (PPPRA) continues to update its pricing template in line with current adjustment in oil prices.
This led to a nationwide outcry that gave birth to the current adjustment in pumping price. The Minister of State for Petroleum Resources, Mr Timipre Sylva, after briefing President Muhammadu Buhari on the current situation, said the drop in global oil prices has pushed the price below N145 per litre.
Speaking before the Federal Executive Council on Wednesday, the minister said: “The drop in crude oil prices has pushed the expected open market price of imported petrol below the official pump price of 145 per litre,” Sylva said.
He added, “Therefore, the FG is directing the NNPC to reduce ex-coastal and ex-depot prices of PMS to reflect the current market realities.”
Brent crude, against which Nigerian oil is priced, declined even further on Thursday during the Asian trading session to $22 per barrel following Saudi Arabia announcement that it would pump 13 million barrels per day in April after the current agreement by OPEC plus expires this month.
This announcement means other members of the cartel would also increase production with a huge discount to push more crude oil into the already saturated global oil market despite weak global demand for the commodity. Experts are predicting a further decline in oil prices to $20 per barrel, except there is a solution to this raging coronavirus.