The price of fuel has reduced by two per cent at the pumps, the National Petroleum Authority has announced.

The regulatory body said it took the decision because prices of crude oil and petroleum products have dropped on the world market.

Crude oil prices on the world market have declined from an average of $109 per barrel in January, this year to $81.14.

A statement from the NPA said the reduction will take effect from October 21, 2014.

The Authority said Oil Marketing Companies must comply with the price reductions.

Prior to the NPA’s announcement, the Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah, had said government would not immediately reduce prices of petroleum products, despite a drop in the price of crude oil on the world market.

“The reduction in the price of oil and the appreciation of the Cedi are transitional trends, which we cannot just rely on to make decisions," the minister said.

when will Nigeria follow suit? remember Ghana has not yet commenced full stream production or refining.

The US for the first time
failed to import a single barrel of crude oil from
Nigeria in July 2014. This troubling scenario,
according to industry watchers, would not augur
well for the Nigerian economy, which is highly
dependent on revenue from oil. Nigeria, Africa’s
biggest crude exporter, depends largely on crude
proceeds to service over 85% of its budget.