Wednesday, September 23, 2026 - The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said the average price of petrol in Nigeria remains lower than in the United States and some African countries despite the removal of subsidy.
Lokpobiri stated this on Channels Television’s Politics
Today on Tuesday while defending the Federal Government’s deregulation of the
downstream petroleum sector amid concerns over high petrol prices.
His comments came as the Dangote Petroleum Refinery and
other marketers began reducing their depot prices following a decline in
international crude oil prices.
Dangote Refinery cut
its petrol depot price from N1,350 to N1,325 per litre, while other marketers
also reduced their prices in Lagos, Port Harcourt, Calabar and Warri.
Despite the reductions, petrol was still selling at between
N1,370 and N1,450 per litre in some locations.
Speaking on Politics Today, Lokpobiri said petrol in Nigeria
was cheaper than in the United States, Cameroon, Ghana and South Africa.
“In the US, the average, you know, liter of fuel is N1,633.
In Nigeria, it’s on the average of N1,430. If you go to Cameroon, it’s N1,959.
If you go to Ghana, it’s N2,070. If you go to South Africa, it’s N2,070. So
Nigeria’s average cost of fuel per litre is still lower than,” he said.
The minister argued that Nigeria’s status as an
oil-producing country and the presence of the Dangote Refinery did not
automatically translate to lower petrol prices.
“As at today, the records available show that USA is the
highest producer of oil and gas in the world. The United States is the highest
producer of oil and gas in the entire world. They also have the highest
refining capacity, but the fuel price per liter is higher than that of Nigeria.
“So despite the fact that Dangote Refinery is here, that
doesn’t mean that the fuel price will be lower because Dangote Refinery is
available. But what is important is that the regulation has also created a new
economy.”
Lokpobiri said deregulation had encouraged private
investment in the oil and gas sector, arguing that the Dangote Refinery would
not have been able to survive if the government had continued importing petrol
and selling it below the market price.
“But for the policy of deregulation, Dangote Refinery
wouldn’t have been the most attractive IPO in the continent. If government was
continuously importing, as NNPC was doing, and selling at a lower price than
the market price, Dangote wouldn’t have been able to survive.”
He said deregulation was intended to create opportunities
for private-sector investment in the midstream and downstream sectors.
“Deregulation all over the world is to enable private sector
businesses to thrive and all the businesses that are associated with with the
oil and gas sector.”
The minister also defended the removal of petrol subsidy,
saying the savings were being distributed to the three tiers of government
through the Federation Account Allocation Committee.
“These days we get 2.1 trillion being shared. This is the
first time it is happening. You’ll recall that before this government came,
about 27 states had no capacity to pay even salaries. Today, states are doing
gigantic projects. It’s because of the savings that we made from this subsidy.”
Lokpobiri said the impact of high energy prices was not
peculiar to Nigeria, noting that consumers in the United States and Europe were
also affected.
“Oil and gas is a global commodity. What is sold in New York
is what is also sold here. So, no matter what you may think, America, or Saudi
Arabia, or anywhere in the world, energy prices will always be the same.”
The minister said the government would not reverse the
deregulation policy despite the pressure on consumers, arguing that the policy
was necessary to encourage investment.
He also cited the Dangote Refinery’s supply of aviation fuel
and rising foreign reserves as evidence of gains from the oil and gas sector.
Lokpobiri further said the Central Bank of Nigeria had
recently stated that 85 per cent of Nigeria’s foreign reserves came from the
oil and gas sector.
0 Comments