Cut Petrol Prices Or Face Sanctions, FCCPC Warns Marketers
The Federal Competition and Consumer Protection Commission (FCCPC) has warned oil marketers against exploiting consumers, saying the current pump price of petrol does not reflect the sustained decline in global crude oil prices.
In a statement issued on Sunday, the Commission said its ongoing surveillance of the downstream petroleum sector revealed signs of consumer exploitation, noting that recent reductions in petrol prices by refiners, depot operators and marketers have been insignificant despite the sharp fall in crude oil prices.
According to the FCCPC, 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 Commission noted that crude prices had surged to around 120 dollars per barrel during heightened tensions in the Middle East between April and May, leading to a rapid increase in petrol pump prices across Nigeria.
It, however, observed that although crude oil prices have returned to levels recorded in February, retail fuel prices have remained relatively high.
The agency recalled that petrol sold for between ₦800 and ₦900 per litre in February before rising sharply to between ₦1,350 and ₦1,500 per litre during the period of geopolitical tensions.
It added that despite the subsequent decline in crude oil prices, petrol is still sold at an average of about ₦1,200 per litre, while some local refiners have fixed ex-depot prices between ₦1,025 and ₦1,075 per litre.
While acknowledging that domestic fuel prices are influenced by factors such as refining costs, foreign exchange fluctuations, logistics, financing and distribution expenses, the Commission insisted that consumers should benefit from lower crude oil prices through competitive pricing.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said although the Commission does not regulate petrol prices in Nigeria’s deregulated downstream petroleum sector, it has a statutory duty to protect consumers from unfair and exploitative practices.
He said, “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 questioned why marketers often increase pump prices immediately when crude oil prices rise but delay passing on the benefits of lower prices to consumers when crude 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 stressed that deregulation does not exempt businesses from competing fairly or respecting consumer rights.
According to Bello, the Commission will investigate and sanction any company found engaging in anti-competitive conduct, consumer exploitation or any other practice that violates the Federal Competition and Consumer Protection Act.
“Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action,” he said.
He also urged Nigerians to report suspected price manipulation, anti-competitive practices and other unfair market behaviour through the Commission’s official complaint channels.
The FCCPC’s warning comes days 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, the global oil benchmark, recently fell to about 72.97 dollars per barrel, its lowest level since February.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
