The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has emphasized that fluctuations in petrol pump prices are primarily influenced by crude oil prices in the international market.
Speaking at the inaugural Petroleum Industry Stakeholders Forum in Abuja, Lokpobiri highlighted that the downstream sector is now fully deregulated, removing government control over price-setting.
His comments come amidst growing concerns over a potential increase in petrol pump prices after Brent crude surpassed $80 per barrel.
On Monday, private depots reportedly raised the loading cost of petrol and other refined products to N950 per litre.
However, marketers present at the forum assured the public that any potential price hike would not be immediate.
Lokpobiri told journalists that deregulation has effectively eliminated issues associated with petrol subsidies, adding, “The whole essence of deregulation is for price to find its level. Before now, you will agree with me that every day you are hearing negative news about petrol subsidies. Today, you journalists have no negative news about petrol subsidies because it is completely regulated, and the price will find its level.”
He further explained the dynamics of price movement, stating, “As oil price goes up, petrol price will go up, and as oil price comes down, the price will come up. During the Christmas season, I was in Bayelsa, and I tried to go around different filling stations. Some filling stations were selling N1,020, others were selling N999, while others were selling N1,015.”
Lokpobiri underscored the government’s focus on quality control, availability, and accurate dispensing of products.
“If you are buying 10 litres of PMS, let it be that you are not short-changed by the retail filling station. That is where we have issues. And once there is competition, people have a choice, and that’s why you don’t see any queues,” he added.
The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, attributed the recent reduction in petrol prices to a partnership with the Dangote refinery.
According to him, independent marketers have been loading products from Dangote and MRS depots since late last year, resulting in uniform and lower prices across the country.
“We have been loading with the Dangote refinery as same with the MRS. We have an agreement between MRS, Dangote, and independent marketers; that is why we sell at a lower price than other marketers because of the partnership with Dangote, and we have a uniform price everywhere in the country; we sell for N935 per litre,” Maigandi explained.
Chairman of the Major Energy Marketers Association of Nigeria and Managing Director of NNPC Retail, Huub Stockman, addressed concerns about the correlation between crude oil prices and petrol pump prices.
He noted that while crude oil costs are a significant factor, price adjustments may not happen immediately.
“I think that is always a bit of a crystal ball conversation if you know what I mean. Because crude and product prices don’t always directly relate. And it’s not always so that when the crude changes, immediately all other products that are derivatives from it change,” Stockman said.
He further noted that while crude oil remains a major component of the pricing template, other market parameters also play a role in determining the cost of petrol.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, also spoke at the forum, highlighting efforts to increase oil production.
He revealed that active oil rigs have risen from eight in 2021 to 38 currently, representing a 79% increase.
“The upstream sector experienced growth in the national oil and gas reserves by 1.45 per cent and 0.206 per cent respectively in 2024 compared with 2023, and oil production rose by 26 per cent from April 2023 to November 2024,” Komolafe said.
He added that theft and deferment have been reduced by over 40% in the past year through collaboration with security agencies, signaling positive progress for the industry.
