Lokpobiri: Market forces determine petrol prices | FG more interested in quality, availability

Heineken Lokpobiri, minister of state for petroleum resources (oil), says global crude oil prices are a major driving force behind petrol pump prices in the country — not the federal government.

Lokpobiri spoke on Thursday at the inaugural petroleum industry stakeholders’ forum organised by the ministry in Abuja.

Recently, the price of Brent, the global benchmark for crude, reached $81 per barrel, triggering a spike in the cost of loading petroleum products.

Oil marketers had said they expect an increase in the pump price of petrol due to rising crude prices.

Speaking at the event, the minister said the price of premium motor spirit (PMS), also known as petrol, in a deregulated market is dictated by international crude oil prices.

Lokpobiri said the government is more interested in quality control and availability.

“What we are concerned about and I always discuss with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPR), is that the government is more interested in quality control and availability,” Lokpobiri said

“What the government is particularly interested in is [the] disposition of the right quantity.

“If we buy 10 litres of petrol, let it be that we are not shortchanged by the petrol pump price; that is where we have issues.

“The essence of deregulation is for price to find its level. Before now, you were hearing negative news about petrol subsidy, but today, there is no news about petrol subsidy because the sector is completely deregulated.

“As the international oil price goes up, the petrol price may go up. As the oil price comes down, the price may come down.

“And once there is competition, people have a choice of petrol stations to buy petrol, and this is why you cannot see any queues, which is the real essence of deregulation.”

Lokpobiri, therefore, assured that the federal government is committed to ensuring quality control and availability of petroleum products in a deregulated sector.

He also said the forum was aimed at bringing the entire oil industry leadership together to unite and build a consensus around things that would better the industry.

MARKETERS ASSURE FG OF CORPORATION

Speaking also at the event, Billy Harry, national president of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), expressed willingness to work with the government to ensure energy security.

Harry recommended that the forum should be convened quarterly in anticipation of favourable policies.

On his part, Abubakar Shettima, national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), while praising the inaugural forum, attributed the current reduction in petrol retail prices to its partnership with Dangote refinery.

Shettima confirmed that IPMAN had started loading petrol from Dangote refinery just like MRS oil marketing company since the end of 2024.

He said the agreement between MRS, IPMAN and Dangote refinery led to the reduction in prices of PMS to a uniform price of N935 across their outlets in the country.