Commission says consumers deserve lower pump prices as global crude oil costs tumble, vows to sanction anti-competitive practices….
The Federal Competition and Consumer Protection Commission (FCCPC) has put petroleum marketers and operators across Nigeria’s downstream oil sector on notice, warning that it will not tolerate any form of consumer exploitation as international crude oil prices continue to decline.
The Commission expressed concern that despite a significant drop in global crude oil prices, the reduction in petrol prices across the country has remained minimal, leaving Nigerians without the expected relief at the pumps.
Speaking through a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the agency’s market surveillance revealed that recent reductions in gantry prices by refiners, depot owners, marketers, and filling stations have been marginal and do not reflect prevailing global market realities.
Bello clarified that although fuel pricing is no longer regulated under Nigeria’s deregulated downstream petroleum market, the FCCPC has the legal responsibility to ensure businesses compete fairly and do not engage in practices that harm consumers.
“Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” he said.
He questioned why petrol prices tend to rise almost immediately whenever international crude prices increase, yet take much longer to decline when global oil prices fall.
“We are concerned that while dealers often respond swiftly by increasing pump prices whenever crude prices rise, consumers are yet to enjoy corresponding benefits now that crude prices have dropped significantly. A competitive market should work fairly in both directions,” Bello stated.
According to the Commission, crude oil prices have fallen sharply to around $73 per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz. The current price marks a significant decline from the highs of about $120 per barrel recorded during heightened geopolitical tensions earlier this year.
Despite the sharp drop in international prices, domestic fuel prices have remained relatively high. Petrol currently sells for an average of about ₦1,200 per litre nationwide, while some refiners continue to offer gantry prices ranging between ₦1,025 and ₦1,075 per litre.
The Commission recalled that during the period of rising crude oil prices between April and May, petrol pump prices climbed to between ₦1,350 and ₦1,500 per litre, while diesel sold for as much as ₦2,000 per litre. By comparison, PMS retailed for between ₦800 and ₦900 per litre in February.
While acknowledging that fuel prices are influenced by several commercial factors, including foreign exchange fluctuations, logistics, refining costs, financing, and distribution expenses, the FCCPC maintained that consumers should still experience more meaningful price reductions when major input costs decline.
According to Bello, the deregulation of the downstream sector does not give businesses the freedom to engage in unfair pricing or anti-competitive behaviour.
“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment. Where there is credible evidence that competition is being undermined or consumers are being exploited, the Commission will investigate and take appropriate enforcement action,” he said.
The FCCPC also urged Nigerians to report suspected cases of price manipulation, anti-competitive conduct, or other unfair business practices through its official complaint channels, assuring the public that every credible report would be thoroughly investigated.
