The continued fall in crude oil price may lead to a further cut in the pumpprice of petrol by the Federal Government any time soon, the outgoing Executive Secretary of the Petroleum Products Pricing Regulatory Agency, Mr. Farouk Ahmed, has said.The PPPRA is the agency of the Federal Government that regulates and fixes prices for petroleum products in the country.
The agency had late December 2015 stated that the pricing template for petroleum products would be reviewed occasionally to reflect fluctuations in the price of crude oil in the international market.
While handing over to the most senior officer of the PPPRA, Mr. Moses Mbaba, in Abuja on Thursday, Ahmed noted that as of February 3, 2016, about one month after the review of the pricing template of petrol, the country had saved N2.6bn as over-recovery on the product.
He was, however, quick to state that the value was low because some of the over-recoveries were still arriving.
He stated that the decision on the review of the pump price of Premium Motor Spirit, popularly called petrol, would be taken next month by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, after due consultation with stakeholders, and based on the price of crude oil in the international market.
