Low Oil Prices: FG Reduces Petrol to N121.50 Per Litre

• Low Oil Prices: FG Reduces Petrol to N121.50 Per Litre

The Federal Government on Monday reduced pumping price of Petrol from N123.50 per litre to N121.50 following the continuous decline in oil prices.

The Petroleum Products Pricing Regulatory Agency (PPPRA), a government agency in charge of price regulation, stated this in a circular issued to fuel marketers on May 31 but obtained by our correspondent on Monday.

The agency said, “Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.

“After a review of prevailing market fundamentals in the month of May and considering marketers realistic operating costs as much as practicable, we wish to advise of a new PMS guiding pump price with the corresponding ex-depot price for the month of June 2020, as follows; price band N121.50 – N123.50 per litre.”

On March 18, 2020, Pumping price of Petrol was reduced from N145 per litre to N125 following over 61 per cent decline in global oil prices due to COVID-19 pandemic.

However, pumping price may rise soon with the gradual improvement in oil prices. The brent crude oil against which Nigerian oil is priced rose to $37.84 per barrel on Monday ahead of OPEC plus meeting this week.

The group had agreed to cut 9.7 million barrels per day in May but recorded only 74 compliance level as members like Nigeria, Iraq struggle to comply given their low fiscal buffers and the surge in economic risk.