Senator Heineken Lokpobiri, the Minister of Petroleum Resources (Oil), has promised continued cooperation with oil and gas companies.
However, he underlined that market forces would still determine the fuel price in a deregulated market.
The minister gave a speech during the Petroleum Industry Stakeholders Forum Meeting in Abuja, which gathered important participants from the Federal Government as well as other private companies, The Nation reported.
The stakeholders at the meeting praised the federal government for fostering an atmosphere conducive to success.
The meeting was intended to foster consensus to articulate what is best for the industry, the minister stated.
Lokpobiri said:
The minister stated that price fluctuations are normal in a deregulated market and that the price of crude oil influences global product prices.
The minister said,
According to the minister, the fundamental goal of deregulation is to allow gasoline prices to fluctuate in accordance with market forces.
He added:
In Bayelsa State, the minister recalled that during the previous Yuletide, prices plummeted to as low as N1,020 per litre, N999 per litre, and so on.
According to him, the government’s goal under a deregulated system is to guarantee product availability, quality control, and the appropriate amount is dispensed.
He said,
According to Lokpobiri, the competition resulting from the deregulated market has eliminated lines in recent weeks.
Huub Stockman, the head of the Major Energy Marketers Association of Nigeria (MEMAN), stated that an increase in the price of crude oil does not always translate into an increase in the price of gasoline.
Although he acknowledged that crude oil plays a significant role in the pricing pattern, he pointed out that other market factors also affect PMS costs.
He added that it was too soon to say that rising crude oil prices would lead to higher gas prices because the future is unpredictable.
TimesNow.com.ng earlier reported that the average price for Premium Motor Spirit (PMS), popularly known as petrol, ranges between N900 and N1,070 per litre at various filling stations nationwide.
There are now strong indications that the prices will not remain that way for a very long time amid a rise in global oil prices.
