The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has clarified that petrol pump price fluctuations in Nigeria will now be dictated by international crude oil prices, following the complete deregulation of the downstream sector.
Lokpobiri made this announcement during the inaugural meeting of the Petroleum Industry Stakeholders Forum (PISF) held in Abuja on Thursday.
The minister emphasized that the Federal Government has withdrawn from regulating petrol prices, allowing market forces to determine the cost at filling stations. This shift comes amid rising concerns over the recent increase in petrol depot prices from ₦909 to ₦970 per litre, sparking fears that pump prices could soon surpass ₦1,000 per litre.
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“The core objective of deregulation is to allow prices to stabilize naturally,” Lokpobiri stated. “Previously, negative reports about petrol subsidies were widespread. Today, those concerns have vanished because petrol is now fully deregulated, and prices will adjust based on market dynamics.”
He further explained, “As global oil prices rise, petrol prices will inevitably increase. Conversely, if oil prices fall, petrol prices will adjust downward. During the last Christmas season, while in Bayelsa, I observed varying pump prices—some stations sold petrol at ₦1,020, others at ₦999, and some at ₦1,015.”
Lokpobiri reassured the public that the government’s primary focus is ensuring quality control, product availability, and accurate fuel dispensation at filling stations.
“Our key concern, as discussed with the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is ensuring that consumers receive the exact quantity they pay for. If a customer purchases 10 litres of PMS, it must be precisely 10 litres,” he said. “This is where we are vigilant. With competition, consumers have options, which is why there are no fuel queues.”
Additionally, the minister highlighted that the PISF, modeled after the Bankers’ Committee meetings, will serve as a platform for industry leaders to collaboratively address and resolve sector-related issues.
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