The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has reaffirmed that fuel pricing in Nigeria is now determined by market forces, as the government no longer regulates pump prices following the full deregulation of the downstream sector.
Speaking at the inaugural meeting of the Petroleum Industry Stakeholders Forum in Abuja on Thursday, Lokpobiri explained that fluctuations in crude oil prices on the global market significantly impact the cost of petrol, and the government’s role is now focused on quality control and ensuring availability rather than setting prices.
His remarks come amid growing concerns over a possible increase in petrol prices, following the recent surge in Brent crude prices, which surpassed $80 per barrel. On Monday, private depot owners raised the loading cost of petrol to ₦950 per litre, fueling speculation about an imminent price hike. However, industry players at the forum assured that any adjustments would not be immediate.
According to Lokpobiri, deregulation has eliminated corruption associated with the fuel subsidy system, allowing prices to stabilize based on market conditions. He observed that during the Christmas season, pump prices varied across different filling stations, ranging from ₦999 to ₦1,020 per litre, highlighting the role of competition in regulating costs.
“The essence of deregulation is to allow prices to adjust naturally. Previously, there were frequent reports of subsidy-related fraud. Now, the market dictates the price, and journalists no longer have negative reports about subsidies,” he said.
The minister emphasized that the government’s priority is ensuring that consumers receive accurate fuel quantities at filling stations and that petrol remains readily available.
Meanwhile, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, attributed the recent drop in petrol prices to a partnership with the Dangote Refinery. He disclosed that independent marketers have started sourcing petrol from Dangote and MRS depots, leading to uniform pricing and a reduction in retail fuel costs across the country, with some stations selling at ₦935 per litre.
Similarly, Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), explained that while crude oil prices influence fuel costs, changes in petrol prices are not always immediate or directly proportional to fluctuations in crude prices.
Stockman, who also serves as Managing Director of NNPC Retail, cautioned that making predictions about fuel price adjustments remains uncertain, as multiple market factors contribute to price determination.
In a related update, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), highlighted significant improvements in Nigeria’s oil sector. He reported that oil and gas reserves grew by 1.45% and 0.206% in 2024, while oil production increased by 26% between April 2023 and November 2024. Additionally, the number of active oil rigs surged by 79%, from 8 in 2021 to 38 in 2024, reflecting a positive trajectory for the industry.
Komolafe also noted that oil theft and production losses have declined by over 40% due to enhanced security collaboration, signaling progress in stabilizing Nigeria’s oil sector.
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