FG Not Involved in Setting Fuel Prices – Minister

Heineken Lokpobiri, the Minister of State for Petroleum Resources, clarified that the government is no longer involved in determining fuel prices as the downstream sector is fully deregulated. He explained that fuel prices are now determined by market forces, with international crude oil prices being the major factor influencing fluctuations at the pump.

During a meeting of the Petroleum Industry Stakeholders Forum, Lokpobiri addressed concerns over the possibility of rising petrol prices following a surge in the cost of crude oil, which recently exceeded $80 per barrel. While some private depots raised the loading cost of petrol to N950 per litre, marketers reassured the public that any increase in fuel prices would not occur immediately.

The minister highlighted that deregulation has eliminated the issues associated with the petrol subsidy, with the government now focusing on quality control, ensuring the right quantity of petrol is dispensed at stations, and maintaining availability.

Lokpobiri noted that the price of petrol will naturally adjust based on fluctuations in crude oil prices, but the government is primarily concerned with the integrity of the retail process, ensuring that consumers receive the correct amount of fuel without being short-changed.

Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), attributed the current reduction in fuel prices to a partnership with Dangote Refinery, which has allowed for lower prices across the country. Similarly, Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria, stated that while crude oil price increases might eventually affect petrol prices, the correlation is not always immediate.

Lokpobiri also discussed the government’s efforts to increase oil production, with a significant rise in active oil rigs from 8 in 2021 to 38 in 2024. This growth, along with improved security collaboration, has led to a reduction in oil theft and deferment. Despite the challenges, he emphasized that Nigeria’s oil industry is experiencing positive developments.

Previous post Key Developments Shaping Nigeria’s Economy: Inflation Data Delay, Oil Revenue Surge, and Sectoral Insights
Next post LCCI Criticizes FG for Delayed Implementation of Duty-Free Rice Import Policy

Leave a Reply

Your email address will not be published. Required fields are marked *