The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, says Nigeria’s petrol price remains cheaper than in some countries.
Lokpobiri made the statement on Channels Television’s Politics Today. He defended the government’s decision to remove petrol subsidies and deregulate the downstream sector.
According to him, petrol costs about N1,430 per litre in Nigeria. He compared this with N1,633 in the United States, N1,959 in Cameroon, and N2,070 in Ghana and South Africa.
“So Nigeria’s average cost of fuel per litre is still lower,” he said.
Meanwhile, petrol prices in Nigeria currently range from N1,370 to N1,450 in some locations.
Dangote refinery does not guarantee cheaper petrol
The minister also explained why having the Dangote Refinery does not automatically mean cheaper petrol. He noted that global crude oil prices still influence local fuel costs.
“As at today, the records available show that USA is the highest producer of oil and gas in the world,” Lokpobiri said.
He added that the US also has huge refining capacity, yet petrol remains expensive.
However, recent price cuts have offered some relief to Nigerian motorists. Dangote Refinery recently reduced its petrol depot price from N1,350 to N1,325 per litre.
Government stands by deregulation
Lokpobiri said deregulation has opened the door for more private investment. He argued that Dangote Refinery would have struggled under the old subsidy system.
“But for the policy of deregulation, Dangote Refinery wouldn’t have been the most attractive IPO in the continent,” he said.
He also defended the subsidy removal, saying the savings now go to the three tiers of government through FAAC. According to him, states now receive about N2.1 trillion in monthly allocations.
The minister said the government would not reverse deregulation. He also pointed to aviation fuel supply and rising foreign reserves as signs of progress in Nigeria’s oil and gas sector.
