The Federal Government has announced a reduction in the pump price of Premium Motor Spirit (PMS), popularly called fuel from N168 to N162.44 per litre with effect from December 14.

Dr Chris Ngige, Minister of Labour and Employment, disclosed this at the end of a meeting with labour leaders which lasted from Monday night to early Tuesday morning.

Ngige said a technical committee has been set up to ensure price stability in the industry, explaining that the committee, which will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry.

“Our discussion was fruitful and the Nigerian National Petroleum Corporation which is the major importer and marketers of petroleum products 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,” he said.

The Minister explained that the price reduction was not meant to suspend deregulation because it did not affect the price of crude oil but on areas where the NNPC as the main importer had agreed that it could cut costs like freight and demurrage costs.

He said the new price slash was a product of a joint committee of NNPC and labour representatives, which looked into ways of cutting costs.

On the aspect of electricity tariff, both sides agreed to wait till the next meeting date on January 25 to enable the special committee dealing with complaints to conclude their deliberations.

The President of the Nigeria Labour Congress, Mr Ayuba Wabba, collaborated the position of the minister, saying that the agreement was reached by both sides.