As part of plans to stabilize the dwindling fortune of the Nigerian economy, President Muhammadu Buhari has approved a cut in the price of petrol to N130, from the current price of N145 per litre.
It was gathered that the cut is coming on the heels of the current fall in the prices of crude oil in the global market.
The approval, according to findings, followed suggestions on Wednesday, by the minister of state for petroleum resources, Timipre Sylva, to the Federal Executive Council, FEC, on the need to reduce the pump price due to the crash in oil price, globally.
The international crude oil price was dealt a big blow as it slumped from $60 to $30 and $28; causing fear of a possible economic crisis, especially for economies that largely depend on crude oil to run the affairs of their country, amidst the widespread of the Coronavirus pandemic.
The Federal Government, however, resolved that it would allow the price of crude oil at the international to determine the prices of the product in Nigeria.
Reports further suggest that the formal announcement for the price adjustment would be made shortly as the Minister is currently meeting with members of the organized Labour in the oil and gas sector.
Recall that President Muhammadu Buhari had on Tuesday assured Nigerians of his administration’s resolve to reduce the effect of the current hardship posed by the ravaging pandemic.
The outbreak of the virus and plunging oil price has seen the International Monetary Fund, IMF, cut its projection for Nigeria’s 2020 economic growth to 2% from 2.5%, while there is no assurance that Nigeria would recover quickly from the economic downturn.
According to the Managing Director Nigerian National Petroleum Corp, NNPC, Mele Kyari, Nigeria will need at least three months to clear a production backlog even if crude prices recover.
Nigeria, Africa’s largest economy, has 50 unsold cargoes; a development that further echoes the tough realities that face the Nigerian economy at the moment.