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Deregulation, market forces determine refined petroleum product prices – Lokpobiri – EnviroNews
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The Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, says deregulation is allowing market forces to determine the prices of refined petroleum products in Nigeria.
Lokpobiri stated this on Monday, September 21, 2026, in Abuja, while reacting to the constant hike in fuel prices.
He said that crude oil was an international commodity, and its price is being determined by global market forces, regardless of the volume produced by individual countries.
Lokpobiri highlighted that market dynamics must be allowed to determine prices of refined petroleum products, as was the practice in other parts of the world.
“Oil and gas is an international commodity, the price is known globally.
“The price in Nigeria is the same as the price in New York and London.
“Increasing Nigeria’s crude oil production will not necessarily reduce the prices of locally refined petroleum products under a deregulated market,” he said.
Lokpobiri said that the essence of deregulation was to completely deregulate the downstream sector when this government came in.
According to him, the policy also creates an enabling environment for major investments in Nigeria’s refining sector, citing the Dangote Refinery as an example.
The minister, however, expressed optimism that Nigeria would increase its crude oil production to about three million barrels per day in the coming years.
Lokpobiri attributed the expected increase to growing investments and increased drilling activities in the country.
He said that the number of active drilling rigs in Nigeria had risen from 10 to 65 under the present administration.
“Today, we have over 65 rigs actively working in different fields in Nigeria. We are drilling new wells and making new discoveries,” he said.
The minister said that the increased drilling activities were the result of government’s policies aimed at creating an enabling environment for investment in the oil and gas sector.
By Emmanuella Anokam
