Nigeria, Africa’s largest economy and largest crude producer, on Sunday, announced a reduction in the pump price of premium motor spirit (petrol) from N97 to N87 ($0.5) per litre. The reduction came as a result of the continued slump in global oil prices.

The Minister of Petroleum, Diezani Allison-Madueke, who is also the chairperson of OPEC, made the announcement on the country’s network station, the Nigerian Television Authority (NTA). “I will like to announce the reduction in the price of Premium Motor Spirit by N10. Therefore, the reduction would be from N97 per litre to N87 per litre and this would be effective from midnight Sunday, January 18, 2015. In line with this I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Directorate of Petroleum Resources to ensure that there is strict adherence of this regime as it takes effect from midnight Sunday, January 18. I do hope that the entire country will benefit immensely from this reduction of the pump price.”

Nigerians have called for a price reduction in recent weeks as global oil prices continue to fall. The price of OPEC basket of twelve crudes, which includes Nigeria’s Bonny Light, stood at $43.14 a barrel on Thursday. The continued slump in prices have made several countries in Africa and beyond slash retail price of fuel, but prices had remained the same in Nigeria up until midnight on Sunday.

Nigeria now joins Tanzania and South Africa, two of the African nations, in slashing petrol prices. Other countries that have reduced retail prices of fuel globally include China, Vietnam, Pakistan, India, United Kingdom, among others.

Elsewhere on Ventures

Triangle arrow