Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri has defended Nigeria’s petrol pricing, saying Nigerians are already benefiting from local refining despite the product being sold at a price linked to the global market, and insisting the government has no power to arbitrarily reduce pump prices under a fully deregulated downstream sector.

“Our price is lower than that of the US,” Lokpobiri said during an interview on Channels Television’s Politics Today on Tuesday, September 22, 2026. “Today the price in the USA is higher than that of Nigeria.”

Global Market Determines Price, Not Local Production

Lokpobiri argued that producing and refining crude locally does not insulate Nigerians from international prices, stressing that crude oil and refined petroleum products are traded as global commodities. “Oil and gas is a global commodity, what is sold in New York is also what is sold here,” he said. “So, no matter what you may think, America or Saudi Arabia or anywhere in the world, energy prices will always be the same.”

When asked whether the Bola Tinubu administration has the power to reduce or increase petrol prices, the minister replied: “No, we don’t. Because it is completely deregulated in line with global best standards.”

He warned that Nigerians may not see an immediate reduction in petrol prices if the crisis in the Middle East persists, noting that the purchasing power difficulties Nigerians face are also affecting Americans and Europeans. “The energy cost is a global thing and its effect is a global thing,” he said.

How the Prices Compare

Data from Dailyfuels’ Global Fuel Price Rankings, updated September 14, 2026, places Nigeria at $0.980 per litre and the United States at $1.190 per litre, positioning Nigeria lower on the global table.

At an exchange rate of about ₦1,370 to the dollar, the US national average of $4.313 per gallon on September 13, 2026 translates to roughly ₦1,562 per litre, according to National Daily. Nigerian pump prices stood at around ₦1,420 to ₦1,430 per litre in major cities as of mid-September, with prices ranging from ₦1,350 to ₦1,400 in Lagos and reaching as high as ₦1,500 in some northern states.

The minister’s comparison, however, does not account for the stark wage gap between the two countries. The US federal minimum wage is $7.25 an hour, amounting to about $1,160 monthly before taxes. Nigeria’s national minimum wage is ₦70,000 monthly. A Nigerian worker earning the statutory minimum wage faces a petrol price that is relatively close to the converted US pump price despite earning substantially less in nominal terms.

Subsidy Removal and Deregulation

Lokpobiri defended President Tinubu’s decision to remove fuel subsidy on his inauguration day, saying the move was made at the right time and that Nigeria could have faced a situation similar to Venezuela if the decision had not been taken. He said the removal had saved the country significant funds that could be invested back into the economy.

The minister also noted that the government had previously challenged marketers over the slow pace of petrol price reductions despite significant drops in crude oil prices. In July 2026, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure pump prices reflected market conditions, stressing that deregulation should not be used to justify excessive profiteering.

Current Market Pressures

The minister’s comments came amid renewed pressure on Nigerian consumers. Petrol prices rose to as high as ₦1,500 per litre across several northern states in mid-September following Dangote Petroleum Refinery’s decision to raise its gantry price from ₦1,265 to ₦1,350 per litre — the fourth increase since August 21, representing a cumulative rise of ₦185 per litre, or 15.9 per cent, in 22 days. The refinery subsequently cut its price by ₦25 to ₦1,325 on September 21 as crude prices eased.

Cooking gas prices have also risen by 25 per cent to between ₦1,500 and ₦1,600 per kilogramme, while diesel prices have climbed to as high as ₦2,300 per litre at some filling stations. The Nigeria Labour Congress has called for reasonable wage awards, increased crude oil supply to local refineries in naira, and an expansion of national petroleum storage capacity, warning that sustained increases would push up the cost of food, rent, school fees and transportation.

Broader Implications

Economists have cautioned that fuel-price comparisons between countries must account for taxes, refinery economics, exchange rates, transportation costs and income levels. Professor Wumi Iledare, an emeritus professor of petroleum economics, has argued that the debate should move beyond the pump price to whether Nigeria’s petroleum pricing system is competitive, transparent and efficient.

The minister’s position underscores the fundamental tension in Nigeria’s post-subsidy era: while local refining has expanded and Nigeria now produces refined products domestically, the price Nigerians pay at the pump remains tied to global market forces and exchange-rate movements, leaving consumers exposed to the same volatility as import-dependent markets.