₦airaland Forum

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said the average price of petrol in Nigeria remains lower than in the United States and some African countries despite the removal of subsidy.

Lokpobiri stated this on Channels Television’s Politics Today on Tuesday while defending the Federal Government’s deregulation of the downstream petroleum sector amid concerns over high petrol prices.

His comments came as the Dangote Petroleum Refinery and other marketers began reducing their depot prices following a decline in international crude oil prices.

The PUNCH reported on Wednesday that Dangote Refinery cut its petrol depot price from N1,350 to N1,325 per litre, while other marketers also reduced their prices in Lagos, Port Harcourt, Calabar and Warri.

Despite the reductions, petrol was still selling at between N1,370 and N1,450 per litre in some locations.

Speaking on Politics Today, Lokpobiri said petrol in Nigeria was cheaper than in the United States, Cameroon, Ghana and South Africa.

“In the US, the average, you know, liter of fuel is N1,633. In Nigeria, it’s on the average of N1,430. If you go to Cameroon, it’s N1,959. If you go to Ghana, it’s N2,070. If you go to South Africa, it’s N2,070. So Nigeria’s average cost of fuel per litre is still lower than,” he said.

The minister argued that Nigeria’s status as an oil-producing country and the presence of the Dangote Refinery did not automatically translate to lower petrol prices.

“As at today, the records available show that USA is the highest producer of oil and gas in the world. The United States is the highest producer of oil and gas in the entire world. They also have the highest refining capacity, but the fuel price per liter is higher than that of Nigeria.

“So despite the fact that Dangote Refinery is here, that doesn’t mean that the fuel price will be lower because Dangote Refinery is available. But what is important is that the regulation has also created a new economy.”

Lokpobiri said deregulation had encouraged private investment in the oil and gas sector, arguing that the Dangote Refinery would not have been able to survive if the government had continued importing petrol and selling it below the market price.


“But for the policy of deregulation, Dangote Refinery wouldn’t have been the most attractive IPO in the continent. 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.”

He said deregulation was intended to create opportunities for private-sector investment in the midstream and downstream sectors.

“Deregulation all over the world is to enable private sector businesses to thrive and all the businesses that are associated with with the oil and gas sector.”


The minister also defended the removal of petrol subsidy, saying the savings were being distributed to the three tiers of government through the Federation Account Allocation Committee.

“These days we get 2.1 trillion being shared. This is the first time it is happening. You’ll recall that before this government came, about 27 states had no capacity to pay even salaries. Today, states are doing gigantic projects. It’s because of the savings that we made from this subsidy.”

Lokpobiri said the impact of high energy prices was not peculiar to Nigeria, noting that consumers in the United States and Europe were also affected.

“Oil and gas is a global commodity. What is sold in New York is what is also sold here. So, no matter what you may think, America, or Saudi Arabia, or anywhere in the world, energy prices will always be the same.”

The minister said the government would not reverse the deregulation policy despite the pressure on consumers, arguing that the policy was necessary to encourage investment.

He also cited the Dangote Refinery’s supply of aviation fuel and rising foreign reserves as evidence of gains from the oil and gas sector.

Lokpobiri further said the Central Bank of Nigeria had recently stated that 85 per cent of Nigeria’s foreign reserves came from the oil and gas sector.

Source: https://punchng.com/petrol-cheaper-in-nigeria-than-us-many-african-countries-minister

Is that why $3b was expended but no public refinery is working?

That $3b could have gotten us substantial part of the dangote stakes on offer.

https://www.nairaland.com/8743792/should-nigeria-use-foreign-reserve

Hope Nigeria's minimum wage is bigger than that of US? Useless Apc

Useless pple like tinibu. Wats deregulation n why must it mk fuel costlier.. hopeless pple

The black man is simply an embarrassment. He is using the price of a litre of petrol in the US for comparison. In one day, the least paid worker in the US makes more than Nigeria's monthly minimum wage but the evil animals we call our leaders here in Nigeria will never bring up that comparison.

This is patently misleading.

Heineken don high on Heineken!!!

What about the nigeria minimum wage sir heinekien

Sold conscience individuals

Imagine we are not measuring fuel cost with US.

What is the minimum wage of the United States

Petrol in US is N1,633. In Nigeria, it is N1,430.
What about Wage in US vs Wage in Nigeria

I can only pity those who believe there's something called govt. You will continue to hear nonsense while they create a system that takes away your freedom and make your life miserable.

Dogalmighty17:
The black man is simply an embarrassment. He is using the price of a litre of crude in the US for comparison. In one day, the least paid worker in the US makes more than Nigeria's monthly minimum wage but the evil animals we call our leaders here in Nigeria will never bring up that comparison.

He gave you Ghana, Cameroon, South Africa.

Abi na only US you see?

The minister's name speaks alot about what's influencing him to make these claims

What's the cost of living in US compared to Naija, whats the minimum wage

No wonder dem name you after beer.


Minimum wage is also cheaper in Nigeria than the US. By far cheaper.

tunapawizzy:
Petrol in US is N1,633. In Nigeria, it is N1,430.
What about Wage in US vs Wage in Nigeria

Many of you have a flawed idea about life in the USA.
(I used to think that everyone in the UK lived a good life...and had phone back in the 1970's and 80's. In real life...lol).

USA get good minimum wage, but they also have higher costs of living that make the minumum wage meaningless. And many workers there do not even earn up to minimum wage self.

Nigeria is not a good country, we have messed up, but life in USA is not good.

Also, selling fuel at cheap prices is why we have a massive debt, and also are borrowing at very high rates as a result. Make we accept some hard truths. Person wey tell you this no wan vote tinubu, and I even want him out, but I also know what is reality and what is not. ANd the cold reality is that your government cannot afford fuel subsidy, and has not been able to afford it since the late 1980's self.

Unless we are ready to make the hard choices USA Made to be prosperous,, self.

What do you expect from a drunk...Heineken indeed

Flangelo12:
He gave you Ghana, Cameroon, South Africa.

Abi na only US you see?

Supporters of evil and Anti-goodlife..nodey come out Unless you get better tin wey you wan talk, which you hardly ever have

adenigga:
Source: https://punchng.com/petrol-cheaper-in-nigeria-than-us-many-african-countries-minister

Did they also ask him to say how much is the living wage(minimum wage) in those countries side by side Nigeria?

My question to Peter obi is that once we vote for him

Will he turn petrol price to 50 naira back

The man is rightly wrong, and he's wrongly right. The media is stupendously misleading, twisting events to arouse the anger of the public. If U know U know.

They don't even bother to hide their stupidity and incompetence anymore😄
Lord have mercy!!!
Smh
🚶‍♂️🚶‍♂️

They will never mention the minimum wage when churning out their useless propaganda.
Current federal minimum wage in the US is about 1,256 USD.
Buying petrol for 1,633 naira (1.23 USD) as per today's exchange rate amounts to 0.098% of minimum wage per litre.
Buying petrol for 1,300 in Nigeria amounts to 1.86% of the federal minimum wage of 70,000 naira.
That's a difference of 1.762%, an equivalent of 1,233.4 naira per the current minimum wage in Nigeria.
In the US, a minimum month salary can buy 1,021 litres of petrol.
But in Nigeria, the minimum wage can buy only 51.9 litres! That's a measly 5.1% of the purchasing power in the USA!
They should not talk to us like we are dumb.

Note that I have used the hopefully minimum depot price of 1300 naira per litre for the analysis.
If we use the pump price of 1450 naira, the reality is even more pathetic.

The Man's name always sounds like beer. That is why I don't take him serious.

I see a picture of a drunken man any time he talks...

adenigga:
Source: https://punchng.com/petrol-cheaper-in-nigeria-than-us-many-african-countries-minister

Nigeria is in a big mess.
Did this man verified the minimum wages of these countries.

Dogalmighty17:
The black man is simply an embarrassment. He is using the price of a litre of crude in the US for comparison. In one day, the least paid worker in the US makes more than Nigeria's monthly minimum wage but the evil animals we call our leaders here in Nigeria will never bring up that comparison.

He did use Ghana, and Cameroon, which are not as high as we are, and even SA that is slightly better too.

Also, not everyone in the USA lives large. I know people living there. On paper they earn far more than I would ever do. In real life, when taxes and bills chops their own, na struggle to live.

At least they get value for their service, but they are not living well as we think

Finally, you guys should put pressure on your leaders to make uis a productive nation. Not to support policies that would lead to printing of more money and borrowing so that we can have cheap fuel and 'good salary'...with inflation biting us in the back years later.

BetterScottish:
Supporters of evil and Anti-goodlife..nodey come out Unless you get better tin wey you wan talk, which you hardly ever have

You hate the truth.

You for kuku say make dem dash you the fuel.

Urgent1Million:
They will never mention the minimum wage when churning out their useless propaganda.
Current

Ghana minimum wage : ₦67,273

Cameroon minumum wage: ₦106,850 to ₦145,800

South Africa minimum wage: ₦432,281 to ₦486,325 (also an industrial and productive economy, that's why).

Businext:
1 liter of fuel in Iran: ₦38.
1 liter of fuel in Libya: ₦32.
1 liter of fuel in Saudi: ₦823.
1 liter of fuel in Nigeria: ₦1,500.

Minimum wage in Iran: ₦165,000.
Minimum wage in Libya: ₦210,000.
Minimum wage in Saudi: ₦1.4 million.
Minimum wage in Nigeria: ₦70,000.

Min. wage in Iran will buy 4,342 liters.
Min. wage in Libya will buy 6,562 liters.
Min. wage in Saudi will buy 1700 liters.
Min. wage in Nigeria will buy 46 liters.

The four are oil producing nations.

#DontDefendEvilGovernment

Oil production in Saudi: 11 million bpd for 40 million people
OIl production in Libya: 1.8 Million bpd for 8 million people
Oil production in Iran:3.3 million bpd for 93.2million people, plus they gat debt of 128 billion dollars and rising. (Nigeria is at 121 billion dollars).
Oil produiction in Nigeria: 1.7 million bpd for 230 million people.


If you want Nigeria to be like Saudi or LIbya, na over borrowing and printing of money we go do. LOL.

Why don't also compare the minimum wage of the said countries at least make this people use their head

And our income, currency purchasing power and standard of living are the lowest.