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Petrol Prices Driven by Crude Oil Market, Not Government – Minister

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The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has reiterated that the Federal Government is no longer involved in setting fuel prices, attributing fluctuations in petrol costs to international crude oil market dynamics. Lokpobiri made this statement on Thursday at the inaugural meeting of the Petroleum Industry Stakeholders Forum in Abuja.

Addressing concerns over potential petrol price hikes following Brent crude oil surpassing $80 per barrel, Lokpobiri emphasized that the downstream sector is fully deregulated. “The essence of deregulation is for the market to determine prices,” he said. “As oil prices rise, petrol prices may increase, and when oil prices fall, petrol prices will follow suit.”

Recent price differences at private depots, with loading costs reaching as high as ₦950 per litre, have fueled public apprehension. However, marketers at the forum assured Nigerians that any price adjustment would not be immediate.

Lokpobiri highlighted the government’s focus on quality control, availability, and fairness in fuel dispensing rather than price regulation. He assured that competition among marketers would ensure fair pricing and availability across the country, reducing incidents of hoarding and scarcity.

Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Abubakar Maigandi, credited the recent stabilization in petrol prices to partnerships with Dangote Refinery and MRS filling stations, which have enabled members to sell petrol at ₦935 per litre uniformly across the country.

Similarly, Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria, noted that crude oil prices, while influential, do not directly translate to immediate changes in petrol pump prices due to other market parameters.

In a related development, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, outlined significant growth in Nigeria’s oil and gas sector. He reported a 26% increase in oil production between April 2023 and November 2024 and a 79% rise in active rigs from 8 in 2021 to 38 currently. Additionally, theft and deferments in the sector have dropped by over 40% in the past year, signaling progress in operational efficiency and security.

The forum concluded with stakeholders expressing optimism about ongoing reforms and collaborative efforts aimed at ensuring sustainability and growth in Nigeria’s petroleum sector.

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