Crude oil global price determines petrol cost, says Lokpobiri

Minister of State Petroleum Resources, Heineken Lokpobiri, said the constant spike in the global price of crude oil plays a major role in the country’s petroleum costs.

Fielding questions from reporters recently, Lokpobiri hinted that the federal government’s resolve to deregulate the downstream sector is geared towards helping the price of petroleum products to find its level and stability in the domestic market.

According to him, Nigerians no longer spread negative news about petrol subsidies because it is regulated, adding that the global price of crude oil is the sole determinant of petrol price.

He disclosed this in a recent engagement with journalists. His comments come as rising prices of crude spiked speculations of an imminent rise in domestic petrol prices.

“The whole essence of deregulation is for price to find its level. Before now, you will agree with me that every day you hear negative news about petrol subsidies,” he said.

”As the oil price goes up, petrol price will go up, and as oil price comes down, the price will come up.”

It would be recalled that rising prices of crude spiked speculations of an imminent rise in domestic petrol prices thus to an upward adjustment of ex-depot petrol prices by depot owners in Nigeria barely three days ago

“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,” he said.