President Bola Ahmed Tinubu’s Minister of State (Oil) Petroleum Resources, Heineken Lokpobiri has said the Federal Government was not responsible for the recent increase in the price of petrol across the country.

The minister said this while briefing State House correspondents after a meeting with Vice-President Kashim Shettima on Thursday, September 5, 2204.

Lokpobiri said the industry has been deregulated, and that the government was not fixing prices of petrol and other petroleum products.

“This sector is deregulated. And we believe that with the availability of products, the price will find its level.

“What is important is that the product is available in the country; between now and the weekend, there will be availability of the product (petrol) across the length and breadth of the country,” he said.

He said it was important to convey to Nigerians that the President was empathetic about what was going on in the country.

“He is concerned about the hardship of Nigerians, and that was why he directed the Vice President to call this meeting, for us to reflect on what is going on in the country.

“But, we believe that by the time there is availability of the product (petrol) across the country, the price itself will stabilise,” said the minister.

Lokpobiri said Shettima had summoned him along with Mele Kyari, the Group Managing Director of Nigerian National Petroleum Company Limited (NNPCL) and Nuhu Ribadu, the National Security Adviser, over the recent hike in the price of petrol.

Also, Ogbugo Ukoha, executive director, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said regulatory efforts were geared toward stabilising supply of petrol in the country, which he said would impact positively on stability of price.

“The objective of the regulator is to ensure that there’s increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit truck outs as well.

“More importantly also is the reinforcement of the support being given to local refinancing, because with increased production there will be higher supply, which will stabilise the price,” said Okuoha.

It would be recalled that the price of petrol was increased from N855 to N897 per litre, depending on the location, from the previous N568-N617.

Meanwhile, Nigerian National Petroleum Company Limited (NNPCL) has said Premium Motor Spirit or petrol from the Dangote Refinery will begin to flood the market from September 15, 2024.

The company who revealed this in a statement signed by its Chief Corporate Communications Officer, Olufemi Soneye on Thursday in Abuja, said prices of products would be determined by market forces.

The development follows the commencement of petrol refining by the Dangote Refinery earlier in the week.

Quoting NNPCL’s Executive Vice President of Downstream, NNPC Ltd, Adedapo Segun, Soneye said the downstream sector had been fully deregulated, and the company would no longer fix prices.

His argument puts to rest speculations that NNPCL would continue to fix prices despite announcement that the downstream sector had been deregulated.

The speculation was also fueled by reports that NNPCL would be the sole lifter of petrol from the Dangote refinery.

“The Nigerian National Petroleum Company Limited (NNPC Ltd) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA),” the statement said in part.

While quoting Segun, NNPCL explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”

He said Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by unrestricted free market forces.

According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

On the commencement of lifting PMS from the Dangote Refinery, Segun said that NNPC Ltd was awaiting the September 15th timeline provided by the refinery.

Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd had nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, to maintain adequate fuel supply to meet the needs of Nigerians.”

He assured Nigerians: “We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”