The Federal Government has agreed to reduce the pump price of Premium Motor Spirit (PMS), known as petrol, by N5 from Monday next week.
Sen. Chris Ngige, Minister of Labour and Employment, disclosed this while addressing newsmen at the end of a closed-door meeting with the organised labour on Tuesday in Abuja.
The meeting was necessitated by the increase of PMS from N160 per litre to N170 and the increase in electricity tariff.
Ngige said that the new price of petrol template would come into effect from Monday next week.
“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.
“The price cut will get us about N5 per litre and that the price cut will take effect from next Monday, a week from today,” he said.
He noted that the price reduction was not meant to suspend deregulation as it did not affect the price of crude oil.
He, however, said that the NNPC as the main importer has agreed that it would cut costs like freight cost and demurrage.
The minister noted that the new price slash was a product of a joint committee of NNPC and labour representatives who look into ways of cutting costs.
Ngige also said that government and labour have agreed to wait until the next meeting on Jan. 25, 2021 on the aspect of electricity tariffs.