Petrol Prices Reflect Global Market, Nigerian Minister Says

Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, has said the government cannot directly control petrol prices because the market is deregulated and energy is traded globally. Speaking on Channels Television’s Politics Today on Tuesday, Lokpobiri linked the pressure on Nigerian consumers to events in the Middle East. He said energy prices could remain high if the crisis continued, adding that the effects were also being felt by consumers in the United States and Europe.

The minister said crude oil and refined petroleum products were global commodities, meaning Nigeria could not operate in isolation or arbitrarily set prices. He said direct control would require the reintroduction of a fuel subsidy. Lokpobiri also rejected the suggestion that Nigeria’s oil output alone could determine petrol prices.

He said even production of three million barrels a day would not necessarily change prices because the commodities are traded in a global market. The comments came as Nigerians face higher petrol costs and reduced purchasing power. Lokpobiri said similar pressure was affecting consumers elsewhere, describing the impact of energy costs as global rather than unique to Nigeria.

He also defended President Bola Tinubu’s decision to remove the fuel subsidy on the day of his inauguration. The minister said the decision was taken at the right time and claimed Nigeria could otherwise have faced a situation similar to Venezuela. He added that ending the subsidy had saved funds that could be invested in the economy.