FCCPC Warns Petrol Marketers over High Fuel Prices Despite Crude Oil Decline

The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers against unfair pricing practices, expressing concern that Nigerians are yet to benefit from the recent decline in global crude oil prices.

In a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said its ongoing surveillance of the downstream petroleum sector revealed that reductions in gantry and retail petrol prices have been insignificant despite the sharp fall in crude oil prices on the international market.

The Commission recalled that local refiners and marketers quickly increased pump prices when global crude oil prices surged during heightened tensions in the Gulf between April and May.

During that period, petrol prices climbed to between ₦1,350 and ₦1,500 per litre, while diesel sold for as much as ₦2,000 per litre across parts of the country.

According to the FCCPC, petrol is currently selling at an average of ₦1,200 per litre nationwide, while some local refiners have reduced their gantry prices to between ₦1,025 and ₦1,075 per litre.

“The Federal Competition and Consumer Protection Commission has expressed concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers.

“A review of the gantry prices of local refiners, marketers, depot operators and retail outlet operators revealed token reductions in prices that are not commensurate with the steep fall in crude prices in the global market,” the statement said.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the Commission was worried by what appeared to be an imbalance in how marketers respond to fluctuations in crude oil prices.

According to Bello, operators in the downstream sector often react immediately by increasing pump prices whenever crude oil prices rise but are reluctant to pass on savings to consumers when international prices fall.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. 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,” Bello said.

He stressed that competitive markets should operate fairly in both directions, insisting consumers deserve to benefit from lower crude oil prices just as they bear the burden whenever prices increase.