Petrol Still Cheaper in Nigeria Than US, Ghana, South Africa — Lokpobiri
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has defended the Federal Government’s deregulation of the downstream petroleum sector, saying the average price of petrol in Nigeria remains lower than in the United States and several African countries.
Lokpobiri made the statement while speaking on Channels Television’s Politics Today on Tuesday, amid continued concerns over the high cost of petrol in Nigeria. His comments came as the Dangote Petroleum Refinery and other fuel marketers began reducing their depot prices following a decline in international crude oil prices.
The Dangote Refinery reportedly reduced its petrol depot price from N1,350 to N1,325 per litre, while other marketers also announced reductions in parts of the country. Despite the adjustments, petrol prices in some locations remained between N1,370 and N1,450 per litre.
Defending the current pricing regime, Lokpobiri said Nigeria’s average petrol price was still below prices in the United States, Cameroon, Ghana and South Africa. He put Nigeria’s average price at about N1,430 per litre, compared with approximately N1,633 in the US, N1,959 in Cameroon and N2,070 in both Ghana and South Africa.
The minister argued that being an oil-producing country does not automatically guarantee cheaper petrol, noting that the United States is the world’s largest oil and gas producer and also has significant refining capacity, yet its petrol price remains higher than Nigeria’s.
According to Lokpobiri, the presence of the Dangote Refinery would not by itself determine pump prices because international crude oil prices and other market factors influence the cost of petroleum products.
He also maintained that deregulation had created opportunities for greater private-sector participation in Nigeria’s oil and gas industry. The minister argued that continued government importation of petrol and sale below market prices would have made it difficult for private refineries, including the Dangote Refinery, to operate sustainably.
Lokpobiri further defended the removal of petrol subsidy, saying funds saved from the policy were being shared among the federal, state and local governments through the Federation Account Allocation Committee.
He claimed that monthly allocations had increased significantly, allowing states to meet salary obligations and undertake major infrastructure projects. The minister also said deregulation was designed to encourage investment across the midstream and downstream sectors.
Addressing concerns over rising energy costs, Lokpobiri said the impact was not limited to Nigeria because crude oil and petroleum products are traded in a global market. He said fluctuations in international energy prices therefore affect consumers in different countries.
The minister ruled out a reversal of the deregulation policy, maintaining that the government’s position was aimed at creating a market that would attract investment and strengthen the country’s petroleum industry.
He also pointed to the Dangote Refinery’s production of aviation fuel and developments in Nigeria’s foreign reserves as some of the benefits emerging from the sector. Lokpobiri further cited a recent statement attributed to the Central Bank of Nigeria that 85 per cent of the country’s foreign reserves came from the oil and gas sector.
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