The Federal Government has agreed to slash the pump price of Premium Motor Spirit (PMS), known as petrol, by N5 from next week Monday.

Chris Ngige, the minister of labour, announced the decision while addressing journalists at the end of a meeting with labour union leaders.

The price reduction, which will take effect on Monday, December 14, will see petrol retail at N162.44 per litre.

“Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC), which is the major importer and marketers of petroleum product, 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 said.

The minister explained that the price reduction was possible because the Nigerian National Petroleum Corporation (NNPC) has agreed to cut costs like freight cost and demurrage.

This, he said, does not reverse the deregulation of petrol.

Mr Ayuba Wabba, President, Nigeria Labour Congress (NLC) also confirms the changes. He said the meeting was fruitful.

Wabba said that the Federal Government has agreed to a reduction in the price of petrol.

On the electricity tariff, Ngige said both sides agreed to wait to allow the special committee constituted to examine the justification for a new cost-reflective tariff introduced by the Nigerian Electricity Regulatory Commission (NERC).

The committee was set up after the September 28 meeting between the federal government and the Nigeria Labour Congress (NLC).

According to Ngige, the next meeting date will be January 25.