The FCCPC petrol prices debate has intensified after the Federal Competition and Consumer Protection Commission (FCCPC) warned oil marketers against taking advantage of consumers despite the sustained decline in global crude oil prices.
In a statement issued on Sunday, the Commission said its ongoing surveillance of Nigeria’s downstream petroleum sector showed that recent reductions in petrol prices by refiners, depot operators and marketers remain too small compared to the sharp fall in international crude oil prices.
According to the Commission, global crude oil prices have dropped to about 73 dollars per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.
The FCCPC noted that crude prices had climbed to nearly 120 dollars per barrel during heightened geopolitical tensions between April and May. During that period, petrol pump prices across Nigeria rose rapidly. However, despite crude oil prices returning to levels last seen in February, retail fuel prices have remained significantly higher.
The Commission observed that petrol sold for between ₦800 and ₦900 per litre in February before rising to between ₦1,350 and ₦1,500 per litre during the period of international uncertainty. Although crude prices have since declined, petrol is still selling at an average of about ₦1,200 per litre, while some local refiners continue to fix ex-depot prices between ₦1,025 and ₦1,075 per litre.
The Commission acknowledged that several factors influence domestic fuel pricing, including refining costs, foreign exchange fluctuations, transportation, financing and distribution expenses. Even so, it maintained that consumers should benefit whenever crude oil prices decline through more competitive pricing across the market.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, stressed that although the Commission does not regulate pump prices in Nigeria’s deregulated petroleum market, it has a legal duty to prevent anti-competitive conduct and protect consumers from unfair business practices.
“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.
Speaking on the FCCPC petrol prices concerns, Bello questioned why petrol prices often rise immediately whenever global crude prices increase but fail to decline at the same pace when international prices fall.
“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. Competitive markets must work fairly in both directions,” he said.
He warned that deregulation does not exempt businesses from complying with competition laws or respecting consumer rights.
According to Bello, the Commission will investigate and sanction any company found engaging in anti-competitive conduct, consumer exploitation or other violations of the Federal Competition and Consumer Protection Act.
He added that credible evidence of market manipulation would attract appropriate enforcement measures. The Commission also encouraged Nigerians to report suspected price manipulation, anti-competitive behaviour and other unfair market practices through its official complaint channels.
The warning comes shortly after the Dangote Refinery reduced its ex-depot petrol price from ₦1,175 to ₦1,125 per litre, following the continued decline in international crude oil prices. Brent crude recently traded at approximately 72.97 dollars per barrel, its lowest level since February. As scrutiny of FCCPC petrol prices continues, the Commission says it will sustain market surveillance to ensure consumers benefit fairly from changes in global crude oil prices.
