Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has defended the Federal Government’s deregulation policy, insisting that petrol remains cheaper in Nigeria compared to the United States and several African countries despite the removal of subsidy.
Speaking on Channels Television’s Politics Today on Tuesday, Lokpobiri noted that while Nigerians are concerned about high pump prices, the average cost of petrol locally is still below international levels.
“In the US, a litre of fuel averages N1,633. In Nigeria, it’s about N1,430. In Cameroon, it’s N1,959; in Ghana, N2,070; and in South Africa, also N2,070,” he said.
His comments came as the Dangote Refinery and other marketers announced reductions in depot prices following a fall in global crude oil benchmarks. Dangote cut its depot price from N1,350 to N1,325 per litre, while other marketers made similar adjustments in Lagos, Port Harcourt, Calabar, and Warri.
Despite this, retail pump prices still range between N1,370 and N1,450 per litre depending on location.Lokpobiri stressed that Nigeria’s status as an oil producer and the presence of the Dangote Refinery do not automatically guarantee lower petrol prices.
He pointed out that even the United States, the world’s largest oil and gas producer with the highest refining capacity, sells fuel at higher rates than Nigeria.
The minister argued that deregulation has created a more sustainable economy by encouraging private investment in the oil and gas sector.
He noted that without deregulation, the Dangote Refinery would not have been viable, as government imports and subsidies previously distorted the market.
Lokpobiri also highlighted the fiscal benefits of subsidy removal, stating that savings are now distributed through the Federation Account Allocation Committee (FAAC).
According to him, states are receiving record allocations of N2.1 trillion, enabling them to fund salaries and embark on major infrastructure projects.
He emphasized that high energy costs are a global issue, affecting consumers in the US and Europe as well.
“Oil and gas is a global commodity. What is sold in New York is what is also sold here,” he said, adding that deregulation will not be reversed despite consumer pressure.
The minister further cited gains such as the Dangote Refinery’s supply of aviation fuel and the Central Bank’s report that 85% of Nigeria’s foreign reserves come from the oil and gas sector as evidence of progress.
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