The Nigerian National Petroleum Corporation (NNPC) has been directed to reduce the pump prices of Premium Motor Spirit (PMS) from N145 to N125 per litre to reflect the current market realities.
The Minister of State for Petroleum Resources, Mr Timipre Sylva, confirmed this development when he addressed State House correspondents on the outcome of the meeting of the Federal Executive Council (FEC).
The Council meeting was presided over by President Buhari at the Council Chamber of the Presidential Villa, Abuja.
Sylva disclosed that the reduction in prices would also affect other petroleum products like Kerosine and diesel.
He said the reduction was in line with the Buhari administration to cushion the hardships being experienced by Nigerians.
The reduction is with immediate effect.
Meanwhile, a financial expert, Prof. Uche Uwaleke, said the reduction in the price of fuel would complement the stimulus package announced by the Central Bank of Nigeria (CBN) to reduce the effect of COVID-19.
Uwaleke, of Nasarawa State University, Keffi, said the reduction in the pump price of Premium Motor Spirit (PMS) from N145 to N125 per litre would reactivate economic activities.
“It complements the stimulus packages just announced by the CBN.
“The immediate impact is a reduction in transport costs and possibly food inflation,” Uwaleke said.
The professor, who commended government for the reduction, said that if properly implemented, it would lower inflation rate, which stood at 12.20 per cent in February.
He said that lower inflation rate would translate to improved purchasing power and lower cost of living.
According to him, movement of goods and people will lead to increased economic activities, thereby translating to higher Gross Domestic Product.