The Minister of State for Petroleum Resources, Heineken Lokpobiri, has warned that Nigerians may not see an immediate reduction in petrol prices, citing the impact of global energy markets and the ongoing crisis in the Middle East.
Lokpobiri explained that crude oil and petroleum products are traded in an international market, meaning developments outside Nigeria can directly affect domestic fuel prices.
According to the minister, the continued instability in the Middle East could put further pressure on energy prices globally.
“Because of what is happening in the Middle East, it is expected that energy prices may not come down. We should also know that oil and gas is a global commodity, what is sold in New York is also what is sold here,” he said.
Lokpobiri said the pressure on household purchasing power caused by high energy costs is not unique to Nigeria, noting that consumers in other parts of the world are also facing similar challenges.
“The difficulties Nigerians are facing is not peculiar to Nigerians, if you go to America, the purchasing capacities of Americans are also affected, if you go to Europe the purchasing capacities of Europeans are also affected,” he said.
He stressed that Nigeria could not independently dictate petrol prices under the current deregulated system.
Asked whether the Federal Government had the power to directly reduce or increase petrol prices, Lokpobiri answered in the negative.
“No, we don’t (have power to control price) because it is completely deregulated in line with global best standards all over the world,” he said.
The minister added that even a significant increase in Nigeria’s crude oil production would not automatically translate into cheaper petrol because crude remains a globally traded commodity.
“And as far as I am concerned, whether we are producing 3 million barrels today, the price will not change because it is a global commodity,” he said.
His comments come as petrol prices in Nigeria remain elevated amid rising international crude prices linked to tensions in the Middle East.