The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has defended Nigeria's petrol deregulation policy, saying the country's average pump price remains below those of the United States and some African countries.

Lokpobiri made the statement on Tuesday, September 23, during an interview on Channels Television's Politics Today while responding to concerns over the cost of petrol following the removal of fuel subsidies.

According to the minister, the average price of petrol in Nigeria was about N1,430 per litre, compared with N1,633 in the US.

He also cited higher prices in Cameroon, Ghana and South Africa, putting their respective aver-age prices at N1,959, N2,070 and N2,070 per litre.

Lokpobiri said:

"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."

Dangote Refinery lowers petrol depot price

The minister's comments came as Dangote Petroleum Refinery and other fuel suppliers reduced their prices following a decline in international crude oil prices.

Dangote Refinery cut its petrol depot price from N1,350 to N1,325 per litre, while other marketers in Lagos, Port Harcourt, Calabar and Warri also announced price reductions.

Despite the depot price cuts, petrol was still selling for between N1,370 and N1,450 per litre in some locations.

Lokpobiri said being an oil-producing country does not automatically translate into cheaper petrol for consumers.

He pointed to the US, which he described as the world's largest producer of oil and gas and a country with substantial refining capacity.

He said:

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

Lokpobiri says deregulation supports investment

The minister also maintained that deregulation had encouraged private investment in Nigeria's downstream oil sector.

He argued that continued government fuel imports and below-market pricing by the Nigerian National Petroleum Company Limited could have made it difficult for Dangote Refinery to operate profitably.

Lokpobiri said:

"But for the policy of deregulation, Dangote Refinery wouldn't have been the most attractive IPO in the continent,"

Diesel price rises by 86.40%

Earlier, Legit.ng reported that the National Bureau of Statistics (NBS) has revealed that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, increased by 86.40% year-on-year to N3,277.47 per litre.

According to the latest diesel price watch report released by the statistics agency, the figure rose from N1,758.26 per litre. The report also showed that diesel prices increased by 32.44% on a month-on-month basis