Breaking: FG succumbs to Organised Labour, reduces Petrol Price

The Federal Government has last night in a 5 hours meeting resolved to reduce the current Petrol Price by N5 taking effect from December 14.

Recall that the President of the Nigeria Labour Congress, Ayuba Wabba had in a statement dated 16th November, 2020 condemned the new hike in Petrol Price demanding that the Federal Government reverts to the old price of N158 or face indefinite strike from workers, noting that that the recent increase in fuel price was a breach of an agreement with the government at previous negotiations and the union would not accept such arbitrary increases in the price of petrol.

Contained in Daily Trust, Today https://dailytrust.com/breaking-fg-reduces-fuel-price, the Honourable Minister of Labour and Employment, Chris Ngige, had disclosed to Journalists the intention of the Federal Government to step down the Petrol Price from N168 to N162.44 per liter after the meeting with the leadership of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) which was held at Old Banquet Hall, Presidential Villa.

Dr Ngige further disclosed that a technical committee has been set up to ensure price stability in the industry, noting 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,” Ngige told journalists.

The Labour Minister explained that the price reduction would not 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 cost like freight and demurrage costs, adding that the reduction of new price was a product of a joint committee of NNPC and labour representatives which looked into the ways of cutting costs.