The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has defended Nigeria's petrol deregulation policy, stating that the country's average pump price of N1,430 per litre remains lower than those in the United States and several African nations, including Ghana, Cameroon, and South Africa.
Minister Cites Comparative Petrol Prices Across Countries
Lokpobiri made the remarks on Tuesday, September 23, during an interview on Channels Television's Politics Today, responding to public concerns over the cost of petrol following the removal of fuel subsidies. He provided a direct comparison of average petrol prices per litre: Nigeria at N1,430, the US at N1,633, Cameroon at N1,959, Ghana at N2,070, and South Africa at N2,070.
“In the US, the average, you know, liter of fuel is N1,633. In Nigeria, it's on the average of N1,430. If you go to Cameroon, it's N1,959. If you go to Ghana, it's N2,070. If you go to South Africa, it's N2,070,” the minister said.
Dangote Refinery and Marketers Reduce Depot Prices
The minister's comments came as Dangote Petroleum Refinery and other fuel suppliers reduced their depot prices following a decline in international crude oil prices. Dangote Refinery cut its petrol depot price from N1,350 to N1,325 per litre, while marketers in Lagos, Port Harcourt, Calabar, and Warri also announced reductions.
Despite these depot price cuts, petrol was still retailing for between N1,370 and N1,450 per litre in some locations across the country.
Deregulation Supports Investment in Downstream Sector
Lokpobiri argued that being an oil-producing country does not automatically translate into cheaper petrol for consumers. He pointed to the US, which he described as the world's largest producer of oil and gas with substantial refining capacity, yet its fuel price per litre is higher than Nigeria's.
“As at today, the records available show that USA is the highest producer of oil and gas in the world. They also have the highest refining capacity, but the fuel price per liter is higher than that of Nigeria,” he stated.
The minister also maintained that deregulation has encouraged private investment in Nigeria's downstream oil sector. He argued that continued government fuel imports and below-market pricing by the Nigerian National Petroleum Company Limited could have made it difficult for Dangote Refinery to operate profitably.
“But for the policy of deregulation, Dangote Refinery wouldn't have been the most attractive IPO in the continent,” Lokpobiri said.
Diesel Price Rises by 86.40% Year-on-Year
In a related development, the National Bureau of Statistics (NBS) reported that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, increased by 86.40% year-on-year to N3,277.47 per litre, up from N1,758.26 per litre. The NBS diesel price watch report also showed a 32.44% month-on-month increase, reflecting continued upward pressure on fuel costs in Nigeria.
