Minister Lokpobiri Responds to Dangote, Clarifies FG’s Position on Petrol Pricing
In a recent development that has drawn widespread attention, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has responded to claims made by Aliko Dangote, President of Dangote Refinery and Petrochemical Company Ltd, regarding the pricing of Premium Motor Spirit (PMS), commonly known as petrol. During an interview with journalists following a high-level meeting with Vice President Kashim Shettima, Lokpobiri made it clear that the Federal Government does not have a hand in setting the price of petroleum products, effectively countering Dangote’s earlier assertions.
The controversy began after Dangote claimed that the Federal Executive Council (FEC) was actively involved in determining the price of petrol produced by his refinery. According to Dangote, this pricing arrangement was being designed and would soon be finalized with the input of the Federal Executive Council, under the leadership of President Bola Tinubu.
Dangote, speaking about the retail pricing of petrol, said, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu. As soon as it is finalized, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.”
However, Minister Lokpobiri took the opportunity to debunk this notion, emphasizing that Nigeria’s petroleum industry had been deregulated since the passage of the Petroleum Industry Act (PIA). The deregulation, he explained, means that the pricing of petroleum products is no longer under government control but is now dictated by market forces—specifically, the dynamics of demand and supply.
The Government’s Stance: Petroleum Prices Driven by Market Forces
The interview took place shortly after a key meeting at the State House, which was convened following a directive by President Bola Tinubu to Vice President Kashim Shettima. The meeting was aimed at addressing the ongoing challenges in the petroleum sector, particularly in light of rising petrol prices and supply disruptions across the country. The gathering was attended by top officials, including the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd (NNPC), Mele Kyari; the National Security Adviser, Nuhu Ribadu; and the Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ogbugo Ukoha.
In his address to the press, Lokpobiri said, “We were summoned by the Vice President, who was directed by the President to call for this meeting, and we have been with him to brief him on what is going on across the country. And the most important is to convey to Nigerians that the President is working and empathetic about what is going on in the country. He is concerned about the hardship among Nigerians, and that is why he directed the VP to call this meeting for us to reflect on what is going on in the country.”
The Minister reiterated that the Federal Government’s role in the petroleum sector has shifted following the industry’s deregulation. “The government is not fixing prices,” Lokpobiri emphasized. “This sector is deregulated, and with the availability of products, the price will find its level. There should not be panic buying, and the government is not fixing prices.”
Lokpobiri pointed out that while prices may currently be higher in some regions due to supply shortages, he expects prices to stabilize once fuel availability improves across the country. “What is important is that products are available in the country, and we believe that between now and the weekend, there will be availability of products across the length and breadth of the country,” he stated.
