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The Minister of State for Petroleum Resources, Heineken Lokpobiri, has described the increase in the price of fuel as a global issue.
It was reported that Lokpobiri spoke during an appearance on Channels Television’s Politics Today on Tuesday.
According to him, the situation could worsen if the crisis in the Middle East persists.
He said the difficulties Nigerians are facing with their purchasing power due to high petrol prices are also affecting Americans and Europeans.
He said, “Because of what is happening in the Middle East, it is expected that energy prices may not come down. We should also know that oil and gas is a global commodity, what is sold in New York is also what is sold here.
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“So, no matter what you may think, America or Saudi Arabia or anywhere in the world, energy prices will always be the same. The difficulties Nigerians are facing is not peculiar to Nigerians, if you go to America, the purchasing capacities of Americans are also affected, if you go to Europe the purchasing capacities of Europeans are also affected. The energy cost is a global thing and its effect is a global thing.”
The minister also said crude oil and refined petroleum products are traded globally, stressing that Nigeria cannot operate in isolation or arbitrarily regulate prices without reintroducing fuel subsidy.
Asked if President Bola Tinubu’s administration does not have the power to reduce or increase petrol prices, the minister replied in the negative.
“No, we don’t (have power to control price) because it is completely deregulated in line with global best standards all over the world.
“Because I am a leader of OPEC, I am the leader of the Nigerian delegation as far as oil is concerned, I go round the entire world, every country is facing the same problems.
“And as far as I am concerned, whether we are producing 3 million barrels today, the price will not change because it is a global commodity,” he said.
The minister also defended President Bola Tinubu’s decision to announce the removal of fuel subsidy on his inauguration day, saying the move was made at the right time.
He said Nigeria could have faced a situation similar to Venezuela if the decision had not been taken.
“This decision was made at the right time and if it wasn’t made then, Nigeria would have been like Venezuela,” the minister said.
