inister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has defended the federal government’s downstream petroleum deregulation policy, asserting that Nigeria’s average petrol prices remain lower than those in the United States and several African nations.
Speaking on Channels Television’s Politics Today, Lokpobiri noted that despite the removal of the petrol subsidy, the domestic pump price sits at an average of N1,430 per litre. In comparison, he stated that prices are higher in the U.S. (N1,633), Cameroon (N1,959), Ghana (N2,070), and South Africa (N2,070).
The minister’s comments coincide with recent market adjustments, as the Dangote Petroleum Refinery and other key marketers reduced depot prices following a decline in international crude oil prices. Dangote lowered its depot price from N1,350 to N1,325 per litre, with similar adjustments recorded across depots in Lagos, Port Harcourt, Calabar, and Warri.
Addressing public expectations that domestic production should automatically yield cheaper fuel, Lokpobiri pointed out that the United States the world’s leading oil and gas producer with immense refining capacity also maintains higher fuel prices than Nigeria. He added that the presence of the Dangote Refinery alone does not dictate lower market prices, but rather highlights a transformed, market-driven economy.
According to the minister, the deregulation policy has successfully fostered private-sector investment, noting that the Dangote Refinery could not have thrived if the state had continued heavily subsidizing imports. He also highlighted the broader fiscal impacts, explaining that savings from subsidy removal are being channeled through the Federation Account Allocation Committee, enabling state governments to fund infrastructure projects and consistently meet salary obligations.
Despite ongoing cost-of-living pressures on consumers, Lokpobiri confirmed that the federal government has no intention of reversing the policy. He emphasized that oil is a globally traded commodity influenced by international market trends, and reiterated that the energy sector continues to anchor the nation’s economic stability, contributing roughly 85% of Nigeria’s foreign reserves.
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