The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers against maintaining excessively high fuel prices despite the recent decline in global crude oil prices, stating that consumers deserve to benefit from lower costs.
The Commission said its ongoing monitoring of Nigeria’s downstream petroleum sector revealed signs of potential consumer exploitation, as reductions in petrol prices by refiners, depot operators and marketers have remained minimal despite a significant drop in international oil prices.
FCCPC Questions High Petrol Prices Amid Falling Crude Oil Costs
In a statement issued on Sunday, the FCCPC noted that global crude oil prices have fallen sharply to around $73 per barrel following the easing of tensions between the United States and Iran and the reopening of the Strait of Hormuz.
The agency recalled that crude oil prices had surged to approximately $120 per barrel during heightened geopolitical tensions in the Middle East between April and May, triggering rapid increases in petrol prices across Nigeria.
However, despite crude prices returning to levels similar to those recorded earlier in the year, retail petrol prices have remained significantly higher.
Consumers Yet to Benefit from Price Drop
According to the Commission, 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 peak of the crisis.
Although international crude oil prices have since declined, many filling stations still sell petrol at an average price of about ₦1,200 per litre.
The FCCPC also noted that some local refiners currently sell petrol at ex-depot prices ranging from ₦1,025 to ₦1,075 per litre.
FCCPC: Deregulation Does Not Permit Consumer Exploitation
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, emphasized that while the agency does not regulate fuel prices under Nigeria’s deregulated petroleum market, it has a legal mandate to 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.
He questioned why fuel marketers often increase pump prices immediately when crude oil prices rise but fail to implement corresponding reductions when market conditions improve.
“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 added.
Marketers Risk Investigation and Sanctions
The FCCPC warned that market deregulation does not exempt businesses from complying with competition laws or respecting consumer rights.
According to Bello, the Commission is prepared to investigate any company suspected of engaging in anti-competitive practices, price manipulation or consumer exploitation.
He stressed that firms found violating provisions of the Federal Competition and Consumer Protection Act could face regulatory sanctions.
“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 stated.
Nigerians Urged to Report Unfair Practices
The Commission also encouraged consumers to report suspected cases of price fixing, market manipulation and other unfair practices through its official complaint channels.
The warning comes shortly after the Dangote Refinery announced a reduction in its ex-depot petrol price from ₦1,175 per litre to ₦1,125 per litre, citing the continued decline in global crude oil prices.
Brent crude, the international oil benchmark, recently dropped to approximately $72.97 per barrel, its lowest level since February.
