The Federal Competition and Consumer Protection Commission (FCCPC) has warned operators in the downstream petroleum sector against exploiting consumers by failing to reflect the recent decline in global crude oil prices at retail pump stations.
In a statement issued on Sunday, FCCPC Executive Vice Chairman/Chief Executive, Tunji Bello, said ongoing market surveillance had shown that reductions in gantry prices by local refiners, marketers, depot operators and fuel retailers have been marginal and far below the pace of global crude price declines.
According to FCCPC spokesman Ondaje Ijagwu, Bello stressed that while the Commission does not regulate or approve petroleum prices in Nigeria’s deregulated downstream market, it will not hesitate to investigate and sanction operators found to be engaging in anti-competitive, deceptive or exploitative practices in violation of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the FCCPA 2018 is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” Bello said.
“We are concerned that while dealers often respond swiftly by increasing pump prices when crude prices rise, it is curious that it takes much longer for consumers to benefit when prices fall. Competitive markets must work fairly in both directions.”
Bello said international crude prices had dropped to about $73 per barrel following a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, down from a peak of about $120 per barrel recorded in April at the height of tensions in the Gulf.
He noted that crude prices had effectively returned to February levels, yet this decline had not been fully reflected in domestic fuel prices.
According to the Commission, petrol sold for between N1,350 and N1,500 per litre during the April–May period when crude prices surged, while diesel rose to about N2,000 per litre amid heightened geopolitical tensions. In contrast, petrol had sold for between N800 and N900 per litre in February.
Despite the reversal in global crude prices, FCCPC said petrol now sells at an average of about N1,200 per litre nationwide, while some local refiners have set gantry prices between N1,025 and N1,075 per litre.
At the time of filing this report, Brent crude futures traded at about $72.44 per barrel, down from over $100 at pre-war levels.
While acknowledging that fuel pricing is influenced by several factors, including refining costs, foreign exchange movements, logistics, financing and distribution expenses, Bello maintained that competitive market forces should ensure consumers benefit more quickly from lower input costs.
He stressed that market liberalisation does not absolve businesses of the obligation to compete fairly or deny consumers the right to fair pricing.
“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment,” he said.
“Where credible evidence indicates conduct that undermines competition, exploits consumers or contravenes the FCCPA, the Commission will investigate and take appropriate enforcement action.”
Bello urged consumers to report suspected anti-competitive behaviour, misleading pricing practices and other forms of unfair market conduct through the Commission’s official complaint channels, assuring that all credible reports would be acted upon.
