Lokpobiri Explains Nigeria's Petrol Price Deregulation

Heineken Lokpobiri, the Minister of State for Petroleum Resources, stated that the Federal Government of Nigeria lacks the authority to directly adjust petrol prices because the downstream oil sector is fully deregulated. During an appearance on Channels Television’s Politics Today, Lokpobiri explained that petrol prices are determined by global market forces rather than the government.

He emphasized that the Bola Tinubu administration cannot arbitrarily change prices without reintroducing fuel subsidies. In response to former Vice President Atiku Abubakar's suggestion for a production subsidy to lower petrol prices, Lokpobiri argued that such a proposal lacks legal, fiscal, and financial justification under the current deregulated structure.

He clarified that domestically refined petrol does not guarantee lower prices since locally produced crude oil is still sold at international market rates. Lokpobiri noted that Nigerians benefit from increased domestic refining, which has improved product availability and kept prices lower than those in the U.S.