Nigerian Officials Defend Petrol Prices Amid Affordability Outcry

Minister of State for Petroleum Resources Heineken Lokpobiri defended the administration of President Bola Tinubu, stating the government cannot arbitrarily reduce petrol prices because the downstream oil sector is fully deregulated. Lokpobiri argued that Nigeria's average fuel cost of ₦1,430 per litre is lower than prices in the United States, Ghana, and South Africa. He rejected a proposal from former Vice President Atiku Abubakar for a production subsidy, asserting that any price reduction would require a return to the fuel subsidy regime.

Petrol prices have reached approximately ₦1,400 per litre in Lagos and Abuja, and ₦1,500 in some northern regions. While the Dangote Petroleum Refinery recently lowered its depot price to ₦1,325 per litre following a dip in global costs, pump prices remain high. The Petroleum Retail Outlet Owners Association of Nigeria rejected demands from civil servants to lower prices to ₦500 per litre, calling the request commercially unfeasible.

Critics and political opponents challenged the government's international comparisons. Atiku Abubakar, through media aide Paul Ibe, argued that nominal price comparisons ignore purchasing power, noting that a Nigerian earning the ₦70,000 minimum wage can afford far less fuel than a U.S. minimum wage earner. Conversely, Edo State Governor Monday Okpebholo defended the reforms by claiming petrol in the United Kingdom costs over ₦3,000 per litre, suggesting that current economic hardships are temporary as the country moves toward a cruising level.