The Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri on Thursday insisted that fluctuations in the pump price of petrol would be determined by the price of crude oil in the international market.

Lokpobiri who spoke in Abuja at the the inaugural meeting of the Petroleum Industry Stakeholders Forum, PISF, in Abuja, noted that the downstream sector is now fully deregulated with the government no longer involved in setting prices.

The government’s position followed the recent hike in the price of petrol from N909 per litre to N970 per litre by depot owners, fueling fears of a possible rise in pump price at filling stations to over N1,000 per litre.

Lokpobiri pointed out that deregulation ended all malfeasance associated with the petrol subsidy policy.

He 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 N1,020, others were selling N999, while others were selling N1,015.

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“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.

Also speaking, the Chairman, Major Energy Marketers Association of Nigeria, MEMAN, Mr. Huub Stockman explained that although petrol pump price is affected by crude oil price, this may not be immediate.

Mr. Stockman, who is also the Managing Director, NNPC Retail, added: “This is because crude and product prices don’t always directly relate. And it’s not always that when the crude price changes, immediately all other products that are derivatives from it change. But I think normally there is a correlation, but I think it’s too early to say when or what impact it would have”.

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On his part, the Authority Chief Executive, NMDPRA, Farouk Ahmed explained that the full price deregulation of petroleum products market has enabled the creation of a level playing field which fosters healthy competition and enables investment opportunities.

He stated that the “reform has occasioned adequate supply and distribution of petroleum products in the country, with consumers enjoying competitive prices and value-added services. The National Energy security has been further enhanced with multiple sources of supply. For the first time in many years, the country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that may have lead to fuel queues”.

Ahmed observed that “the contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies (OMCs) in product supply has been enhanced. Equally, the emerging competitive market environment, downswing in international market price, appreciation in Naira and multiple sources of supply, continue to encourage steady stability in pump price of petroleum products nationwide”.

He added that “the Forum will aid speedy resolution of issues by the policy-making and regulatory bodies thereby helping to mitigate disputes that may otherwise lead to unnecessary and costly litigations or alternative dispute resolutions”.

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Earlier in his address at the meeting, the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr Gbenga Komolafe said the Commission was working hard in collaboration with stakeholders to increase Nigeria’s oil production, adding that the number of active oil rig has increased by 79 per cent from 8 in 2021 to the current 38.

He said: “The upstream sector experienced growth in the national oil and gas reserves by 1.45% and 0.206% respectively in 2024 compared with 2023 and oil production rose by 26% from April 2023 to November 2024. The active rig count increased from an average of 8 in 2021 to 38 as at today representing 79% growth. Also, with effective collaboration with the security agencies, the theft and deferment has reduced drastically by more than 40% in the last year. The import of this is that its not all gloomy for the industry”.

While describing the creation of the forum as timely, Engr Komolafe harped on the need to significantly increase oil production in the country.

“The 2025 budget is predicated on crude oil production of 2.062 million barrels at $75 per barrel whereas our current production is averaging 1.7 million barrels leaving a deficit of about 350,000 barrels to be bridged. To avert budget deficit and revenue gap, the Commission launched the project 1m barrel per day incremental production initiative during its 3rd year anniversary.

“This initiative entails that every player within the upstream value chain operates in onestop shop economic system as against operating in silos thereby failing to leverage optimum capability and economic of scale”, he stated.