Nigeria’s Fuel Price Below US, Ghana, South Africa Levels -Minister

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said the average price of petrol in Nigeria remains lower than in the United States and several African countries, despite the removal of fuel subsidy.

Lokpobiri made the statement on Channels Television’s Politics Today on Tuesday while defending the Federal Government’s decision to deregulate the downstream petroleum sector.

His comments came as the Dangote Petroleum Refinery and other fuel marketers reduced their depot prices following a decline in international crude oil prices.

The Dangote refinery recently reduced its petrol depot price from N1,350 to N1,325 per litre, while other marketers also announced price reductions in Lagos, Port Harcourt, Calabar and Warri. Despite the cuts, petrol was still selling for between N1,370 and N1,450 per litre in some locations.

Defending the current pricing structure, Lokpobiri said petrol remained cheaper in Nigeria than in the United States, Cameroon, Ghana and South Africa.

According to the minister, the average price of a litre of petrol in the US was about N1,633, compared with approximately N1,430 in Nigeria.

He put the average prices in Cameroon at N1,959, and Ghana and South Africa at about N2,070 per litre.

Lokpobiri also argued that Nigeria’s status as an oil-producing country and the presence of the Dangote Refinery did not automatically guarantee lower petrol prices.

He said the United States, despite being the world’s largest oil and gas producer and having significant refining capacity, still records higher petrol prices than Nigeria.

The minister maintained that deregulation had created opportunities for private-sector investment in the oil and gas industry, adding that the Dangote Refinery might not have survived under a system where the government continued to import petrol and sell it below market value.

He said the policy was designed to encourage investment in the midstream and downstream sectors and allow private businesses to operate more freely.

Lokpobiri also defended the removal of petrol subsidy, saying funds saved from the policy were being distributed among the Federal Government, states and local governments through the Federation Account Allocation Committee.

He said the increased revenue available for distribution had enabled states to undertake major projects and improve their ability to meet financial obligations.

The minister further argued that high energy prices were not unique to Nigeria because crude oil and petroleum products are traded in a global market.

He said the government had no plans to reverse the deregulation policy, despite concerns over the effect of petrol prices on consumers, insisting that maintaining the policy was necessary to attract further investment into the sector.

Lokpobiri also pointed to the Dangote Refinery’s production of aviation fuel and developments in Nigeria’s foreign reserves as some of the benefits associated with changes in the oil and gas sector.

Join us on our WhatsApp Platform @KOIKIMEDIA NEWS YOUR PAGE

Koikimedia Bringing the World 🌎 Closer to Your Doorstep