The Nigerian Federal Government has stated that fluctuations in the price of petrol will be influenced by changes in the global crude oil market. Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), emphasized that since the deregulation of the downstream sector, the government is no longer involved in setting petrol prices.
At the inaugural meeting of the Petroleum Industry Stakeholders Forum (PISF) in Abuja on January 16, 2025, Lokpobiri explained that the price of petrol would rise or fall in alignment with global oil price trends. He pointed out that the price increase from N909 to N970 per litre by depot owners was part of this deregulated market, leading to concerns that pump prices could exceed N1,000 per litre at filling stations.
While the government is focused on ensuring product quality, availability, and correct dispensation of quantities at fuel stations, Lokpobiri assured that the deregulation had eliminated the negative impact of the petrol subsidy system.
Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), acknowledged that crude oil prices affect the pump price but noted that the correlation may not be immediate. He also added that crude prices and product prices do not always move in sync.
Further, Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), spoke on the benefits of deregulation, highlighting its contribution to the stable supply of petroleum products, competitive prices, and better service delivery to consumers.
