The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the slow reduction in petrol prices across Nigeria despite the sharp decline in global crude oil prices, warning that operators found exploiting consumers could face regulatory sanctions.
The commission said preliminary findings from its ongoing surveillance of the downstream petroleum market indicate that while international crude prices have fallen significantly, reductions in depot and retail fuel prices have remained minimal.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, described the imbalance as troubling, noting that marketers are often quick to increase pump prices whenever crude oil prices rise but slow to pass on the benefits of lower prices to consumers.
“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall,” Bello said.
He stressed that although the FCCPC does not regulate fuel prices in Nigeria’s deregulated petroleum market, it has a statutory responsibility under the Federal Competition and Consumer Protection Act to prevent exploitative and anti-competitive practices.
According to Bello, competitive markets should respond fairly to both increases and decreases in global oil prices.
The commission’s warning comes as international crude prices continue to decline following easing geopolitical tensions in the Middle East, including the ceasefire between the United States and Iran and the reopening of major shipping routes.
Despite the drop in crude prices, many filling stations across Nigeria still sell petrol at around ₦1,200 per litre, while some local refiners currently offer products at gantry prices ranging between ₦1,025 and ₦1,075 per litre.
In a statement issued by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the commission said its market surveillance revealed only marginal price reductions by refiners, depot operators, marketers and retail outlets.
While acknowledging that factors such as exchange rates, transportation, financing, refining and distribution costs also influence pump prices, the commission maintained that current market conditions should have resulted in more substantial reductions.
Bello warned that market liberalisation does not exempt businesses from operating fairly or protecting consumers’ interests.
He said the commission would investigate and take appropriate enforcement action wherever credible evidence of consumer exploitation, price manipulation or anti-competitive conduct is established.
The FCCPC also urged Nigerians to report suspected cases of unfair pricing and other anti-consumer practices as it intensifies monitoring of the downstream petroleum sector.
