The price of fuel in Nigeria play a major role in influencing the economy and the market prices of other business products and consumption of goods and services. There is always a hike in cost of living each time there’s an increase in petroleum products and pump price of fuel. There exists a major concern and an uncertainty with regard to a possible recession especially during this period of yuletide celebrations when things are normally increased.
The federal government has just recently, announced the reduction in the pump price of petrol by N5. This action by the federal government, is indeed a welcome development despite the fact that many are of the opinion that they could have done much more with regards to the reduction of the pump price,
Speaking on this development, the minister of labour Chris Ngige, announced the decision while addressing journalists at the end of a meeting with labour union leaders.
He disclosed that the decision on the price reduction was necessary with the recent cries of citizens with regards to hike in prices of commodities and high standard of living as well. He further said that this price reduction will take effect on Monday, December 14, will see petrol retail at N162.44 per litre. In his words;
“Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC), which is the major importer and marketers of petroleum product, and customers have agreed that there will be a slide down of the pump price of PMS and that the price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week today,”
Moreso the minister explained further some other factors that made the price reduction was possible. He said it was because the Nigerian National Petroleum Corporation (NNPC) has agreed to cut costs like freight cost and demurrage and that it did not affect or reverse the deregulation of petrol.
Meanwhile the minister spoke on the electricity tariff, and disclosed that both parties has decided to wait to put things on hold for now in other to allow the special committee inaugurated to evaluate the justification for a new cost-reflective tariff introduced by the Nigerian Electricity Regulatory Commission (NERC).
The committee was set up after the September 28 meeting between the federal government and the Nigeria Labour Congress (NLC). The labour minister Ngige, concluded by revealing that the next meeting date was scheduled to hold on January 25. 2020.
Gift Joseph Okpakorese