Petroleum Minister Explains Why Nigerians Are Paying More for Petrol Despite Dangote Refinery
- Petroleum Minister said the Dangote refinery does not automatically guarantee lower petrol prices because global market forces influence fuel costs
- Lokpobiri linked rising petrol prices to developments in the Middle East and said consumers in the US and Europe are also facing higher energy costs
- He defended deregulation, saying it created the conditions that made the Dangote refinery investment possible, while petrol prices have risen
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has explained why the operation of the Dangote refinery may not automatically translate into cheaper petrol for Nigerians.
Lokpobiri said global market conditions, rather than the presence of a major local refinery alone, play a major role in determining the prices of petroleum products.
Source: UGC
The minister made the disclosure during an appearance on Channels Television’s Politics Today programme on Tuesday, September 22, 2026.
According to him, crude oil and refined petroleum products are traded in a global market, meaning developments outside Nigeria can directly affect domestic pump prices.
“So the fact that Dangote refinery is here doesn’t mean that the fuel price will be lower, because Dangote refinery is available,” Lokpobiri said.
He pointed to the United States, which has one of the largest refining capacities globally, but still experiences relatively high petrol prices.
Middle East crisis pushing up energy prices
Lokpobiri linked the recent increase in petrol and other energy prices to developments in the Middle East, warning that prices may remain elevated as global market pressures persist.
“It’s expected that energy prices may not come down. You should also know that oil and gas is a global commodity,” he said.
“What is sold in New York is what is also sold here.”
The minister argued that fluctuations in international energy markets affect consumers across different regions, including the US and Europe.
“No matter what you may think, America or Saudi Arabia or anywhere in the world, energy prices will always be the same,” he said.
He added that consumers in other countries are also dealing with pressure on their purchasing power as a result of higher energy costs.
“If you go to the US, the purchasing capacity of Americans is also affected. If you go to Europe, the purchasing capacity of Europeans is also affected,” Lokpobiri said.
Lokpobiri defends petrol deregulation
The minister also defended Nigeria’s downstream petroleum deregulation policy, arguing that it was instrumental to the survival and growth of private-sector investments such as the Dangote refinery.
According to Lokpobiri, the refinery would have struggled to compete if the government had continued importing petrol and selling it below market prices.
“I also want to emphasize that but for the policy of deregulation, Dangote refinery wouldn’t have been the most attractive IPO in the continent,” he said.
“If government was continuously importing as NNPC was doing, and selling at a lower price than the market price, Dangote wouldn’t have been able to survive.”
Source: UGC
He said deregulation had effectively created a new economic environment in Nigeria’s downstream oil sector while opening opportunities for private investment.
The comments come as Nigerians continue to grapple with rising petrol prices, with pump prices reaching as high as N1,500 per litre in some locations.
Source: Legit.ng
