The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has clarified that fluctuations in the pump price of petrol will now be determined by crude oil prices in the international market, following the full deregulation of the downstream sector.
Lokpobiri made this statement during the inaugural meeting of the Petroleum Industry Stakeholders Forum (PISF) in Abuja on Thursday.
The minister emphasized that the Federal Government is no longer involved in setting petrol prices, as deregulation has placed the determination of prices entirely in the hands of market forces.
Henzodaily understands that the minister’s comments came amid concerns over a recent hike in petrol depot prices from ₦909 to ₦970 per litre, raising fears that pump prices at filling stations may soon exceed ₦1,000 per litre.
Lokpobiri said, “The whole essence of deregulation is for price to find its level. Before now you will agree with me that every day you are hearing negative news about petrol subsidies. Today, you journalists have no negative news about petrol subsidies because it is completely regulated, and the price will find its level.
“As oil price goes up, petrol price will go up and as oil price comes down, price will come up. During the Christmas season, I was in Bayelsa, and I tried to go around different filling stations. Some filling stations were selling ₦1,020, others were selling ₦999, while others were selling ₦1,015.
“What we are concerned about, and I’ve always had that discussion with you, with the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is that the government is more interested in quality control. Government is more interested in availability and what the government is particularly interested in is dispensation of the right quantity.
“If you are buying 10 litres of PMS, let it be that you are not short changed by the retail filling station. That is where we have issues. And once there is competition, people have a choice, and that’s why you don’t see any queues.”
The Minister explained that the PISF which is modelled after the Bankers Fommittee meetings will afford leaders in the oil and gas industry the opportunity of addressing industry issues, amicably.