By Yunusa Abubakar
The price of petrol in Nigeria is primarily determined by global crude oil prices, not government policy, Heineken Lokpobiri, the minister of state for petroleum resources (oil), said.
Lokpobiri made the remark during the inaugural petroleum industry stakeholders’ forum, organized by the ministry in Abuja.
Brent crude, the global benchmark for oil, recently hit $81 per barrel, pushing up the cost of loading petroleum products.
Industry stakeholders, including oil marketers, have warned of a potential increase in petrol pump prices as a result.
In his speech, Lokpobiri emphasized that a deregulated market means petrol prices are tied directly to international crude oil prices. He noted that the government’s priority is ensuring quality control and product availability.
“What we are concerned about… is that the government is more interested in quality control and availability,” Lokpobiri said.
“If we buy 10 litres of petrol, let it be that we are not shortchanged by the petrol pump price.”
The minister explained that deregulation eliminates petrol subsidies, allowing market forces to determine prices.
He also noted that competition in the sector has helped ensure steady availability of petrol, with no queues reported at filling stations.
“As the international oil price goes up, the petrol price may go up. As the oil price comes down, the price may come down,” he added.
Lokpobiri assured stakeholders that the federal government remains committed to maintaining quality and availability in the sector while fostering dialogue to enhance industry progress.
Billy Harry, president of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), expressed his support for the forum and urged that it be held quarterly to anticipate favorable policy changes.
Meanwhile, Abubakar Shettima, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted recent reductions in petrol retail prices.
He attributed the development to collaboration with the Dangote Refinery, which, alongside MRS oil marketing company, has enabled uniform pricing of N935 per liter across their outlets.
Shettima revealed that IPMAN began sourcing petrol from the Dangote Refinery at the end of 2024, helping stabilize supply and reduce costs.
