Dangote Refinery Does Not Guarantee Lower Fuel Prices, Says Lokpobiri

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said the presence of the Dangote Refinery does not automatically mean Nigerians will pay lower prices for petrol.

Lokpobiri made the statement while appearing on Channels Television’s Politics Today, where he explained that fuel prices are influenced by global energy markets and other market forces.

“So the fact that Dangote refinery is here doesn’t mean that the fuel price will be lower, because Dangote refinery is available,” the minister said.

He pointed to the United States, which has one of the world’s largest refining capacities, arguing that high refining capacity does not necessarily translate into the lowest fuel prices. According to him, petroleum products remain globally traded commodities and their prices are affected by developments beyond Nigeria.

Lokpobiri linked recent increases in petrol and other petroleum product prices to developments in the Middle East. He said energy prices could remain elevated because oil and gas prices are influenced by international market conditions.

The minister also defended the Federal Government’s deregulation policy, arguing that it created conditions that enabled private investment in Nigeria’s downstream petroleum sector. He said the Dangote Refinery would not have been as attractive an investment if the government had continued importing petrol and selling it below market prices.

According to Lokpobiri, deregulation has created opportunities for private-sector participation across the oil and gas industry. He maintained that the policy was designed to allow businesses to operate in a market where investment could take place without government-controlled pricing distorting competition.

His comments come amid reported increases in petrol pump prices in parts of Nigeria, with consumers paying as much as N1,450 per litre in some locations. Lokpobiri maintained that global energy market conditions continue to influence the prices Nigerians face at the pump.