The Minister of State for Petroleum Resources, Heineken Lokpobiri, has said the Federal Government does not have the power to directly control the price of petrol under Nigeria’s current deregulated downstream petroleum market.
Lokpobiri made the statement during an appearance on Channels Television’s Politics Today on Tuesday.
According to the minister, the recent increase in petrol prices is largely linked to developments in the global energy market, particularly the ongoing crisis in the Middle East.
He said crude oil and refined petroleum products are globally traded commodities, meaning changes in international energy prices can affect consumers in Nigeria and other countries.
Lokpobiri said the purchasing power of consumers in countries such as the United States and those in Europe is also being affected by rising energy costs.
Asked whether President Bola Ahmed Tinubu’s administration has the ability to increase or reduce petrol prices, the minister responded that the government could not directly control prices because the market is fully deregulated.
He explained that attempting to arbitrarily control petrol prices under the current system would require the reintroduction of fuel subsidy.
Lokpobiri also defended the Tinubu administration’s decision to announce the removal of fuel subsidy on the President’s inauguration day in 2023.
According to him, the decision was taken at the appropriate time and was necessary to prevent a deeper fiscal crisis.
The minister argued that failure to remove the subsidy could have pushed Nigeria towards an economic situation similar to that experienced by Venezuela.
His comments come amid renewed public concern over rising petrol prices and their impact on transportation costs, household expenses and purchasing power across Nigeria.
