The Federal Government on Monday night succumbed to the demand of the Labour Congress as it announced the reduction of petrol pump price from N168 to N162.44 per litre.

The FG however said that the adjustment takes effect from next week Monday, December 14, 2020.

Recall that the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had told the Government negotiation team led by the Secretary to the Government of the Federation, SGF, Boss Mustapha, that until the fuel price was taken back to the initial price, there would be no meaningful discussion.

At the Monday night social dialogue between the Federal Government and the organised labour, at the Old Banquet Hall of the Presidential Villa in Abuja, the Minister of Labour and Employment, Senator Chris Ngige said that an agreement was reached for a slight-down of fuel price.

Chris Ngige told newsmen at the end of a meeting with labour leaders which began at 9pm on Monday and ended at 1:30am on Tuesday that the reduction does not affect the deregulation of the petroleum sector.

He said that the price reduction would lead to a cut of about N5 per litre of petrol, adding that a technical committee has been set up by the larger house to ensure price stability in the industry.

Petrol presently sells at N168 per litre to end users, following the decision of the Petroleum Products Marketing Company (PPMC) a subsidiary of the Nigerian National Petroleum Corporation(NNPC) to increase the ex-depot price of petrol from N147.67 per litre to N155.17 per litre earlier in November.

Ngige said:“This cut will take effect from next week Monday. This cut maintains the deregulation in the industry because it is not a cut on the price of petrol but a cut on the areas where the importers and the main importer, the NNPC have agreed that they can cut cost. Areas like demurrage, large freighting and other commercial areas of the pricing.

“We put in experts to do this for us and because we don’t want this hullabaloo all the time, we set up a committee that has members of labour and NNPC, PPRA, Petroleum Equalisation Fund (PEF), Ministry of Labour, Ministry of Finance, the unions, PENGASSEN, NUPENG, NLC, TUC to stand in, and this time, reappraising the market forces and every other thing that will make for stability in the industry.”

The minister directed members of the committee to liaise with all the marketers to make sure that the cap “is always maintained.”

On the proposed electricity tariff adjustment, Ngige said the electricity committee was still at work.

He said, “They have come down. There is a price now. They are now touring the DISCOS. They are going all over the country. They have been to Lagos. They have been in Ibadan. They are supposed to be in Kano now, but two members of the committee had taken ill and so, they could not continue.”

He assured that the electricity committee would continue after yuletide and report back again on January 25, 2021.