Kehinde Fajobi
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, stated on Thursday that petrol pump prices will fluctuate in line with global crude oil prices, emphasising the deregulation of the downstream sector.
Speaking at the inaugural meeting of the Petroleum Industry Stakeholders Forum (PISF) in Abuja, Lokpobiri explained that the government no longer controls fuel prices, with market forces now determining the cost.
“The whole essence of deregulation is for price to find its level,” he said.
“As oil prices go up, petrol prices will go up, and as oil prices come down, prices will follow suit.”
Lokpobiri noted that deregulation had ended controversies surrounding petrol subsidies and highlighted the government’s focus on ensuring quality control, availability, and accurate fuel dispensation at filling stations.
“Government is more interested in quality control and ensuring that if you are buying 10 litres of PMS, you are not short-changed by the retail filling station,” he added.
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Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria (MEMAN) and Managing Director of NNPC Retail, clarified that changes in crude oil prices might not immediately reflect in petrol pump prices.
“Crude and product prices don’t always directly relate. It’s not always that when crude prices change, all derivatives change immediately. But there’s usually a correlation,” Stockman said.
Farouk Ahmed, Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stated that full deregulation had created a level playing field, fostering competition and investment opportunities.
“For the first time in many years, the country witnessed the end-of-year festivities and the start of a new year without supply disruptions or product shortages,” Ahmed said.
Engr Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), highlighted significant progress in the upstream sector, including a 79% increase in active oil rigs, from 8 in 2021 to 38 in 2024.
“Oil production rose by 26% from April 2023 to November 2024, while theft and deferments have reduced by more than 40% in the last year,” Komolafe stated.
He emphasised the need to bridge the current production deficit to meet the 2025 budget target of 2.062 million barrels per day.
“The Commission’s project to add 1 million barrels per day aims to optimise capabilities and achieve scale efficiency.”
The PISF, modelled after the Bankers’ Committee, aims to address industry challenges through collaborative engagement, minimising disputes and fostering growth.