The Federal Government has directed the Nigerian National Petroleum Corporation to reduce the pump price of petrol from N145 to N125.
This, the government said, was to reflect the current crash in the global price of crude oil.
President Muhammadu Buhari approved the price reduction after the Minister of State, Petroleum Resources, Mr Timipre Sylva, briefed him on the matter.
Sylva also made a presentation to the Federal Executive Council on Wednesday.
“The drop in crude oil prices has the expected open market price of imported petrol below the official pump price of 145 per litre,” the document said.
It added, “Therefore, the FG is directing the NNPC to reduce ex-coastal and ex-depot prices of PMS to reflect the current market realities.”
Speaking with journalists after the session, he said the new price would take “immediate effect”.
The government directed the NNPC and the PPPRA to work out the details.
He added that the pump prices of diesel and kerosene would also be reduced.
Sylva said the NNPC would roll out all the new prices soon.
Crude oil sells for about $29 per barrel, dropping from about $60 in December.