The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has stated that international crude oil prices are a key factor driving fluctuations in petrol pump prices.
Lokpobiri also confirmed that the downstream sector is now fully deregulated, with the government no longer involved in setting prices.
The Minister made this disclosure at the inaugural meeting of the Petroleum Industry Stakeholders Forum, held on Thursday in Abuja.
It was earlier reported that there have been growing concerns over a possible rise in petrol pump prices following the surge in Brent crude, the global benchmark, which crossed $80 per barrel.
On Monday, private depots raised the loading cost of petrol and other refined petroleum products to N950 per litre.
Speaking to journalists after the meeting, Lokpobiri emphasized that deregulation has eliminated all malpractices associated with the petrol subsidy policy.
According to him, the government is now focused on quality control, as petrol prices are determined by market forces rather than being controlled or predicted by any individual.
He said, “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.
“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.
“What we are concerned about, and I’ve always had that discussion with you, with the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is that the government is more interested in quality control. The government is more interested in availability, and what the government is particularly interested in is the dispensation of the right quantity.
“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.”
Meanwhile, the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, credited the recent reduction in petrol prices to the partnership with the Dangote refinery.
He explained that since late last year, members of the association have started loading petrol from the Dangote refinery, alongside the MRS filling station, which has contributed to a decrease in the retail price of petrol nationwide.
He said, “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.”
In his remark, the Chairman of the Major Energy Marketers Association of Nigeria, Huub Stockman, stated that although crude oil prices affect petrol pump prices, the impact may not be felt right away.
He stated that the recent rise in crude oil prices does not necessarily translate into an immediate increase in petrol prices.
Stockman, also the Managing Director of NNPC Retail, noted “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.
“So if I knew, I would probably not be standing here, but I would do something else. But I think normally there is a correlation. But I think it is too early to say when or what impact it would have.”
Earlier in his address at the meeting, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, stated that the NUPRC is working diligently with stakeholders to boost Nigeria’s oil production.
He added that the number of active oil rigs has risen by 79 percent, from 8 in 2021 to the current 38.
