The Federal Competition and Consumer Protection Commission (FCCPC) has warned oil marketers against keeping petrol prices high despite the sharp decline in global crude oil prices, saying consumers are being unfairly denied the benefits of lower costs.
In a statement on Sunday, the Commission said its ongoing surveillance of the downstream petroleum sector revealed that recent reductions in petrol prices by refiners, depot operators and marketers were only marginal and did not reflect the significant drop in international crude prices.
According to the FCCPC, crude oil prices have fallen to about $73 per barrel following a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz. The Commission noted that this represents a major decline from the $120 per barrel recorded in April, with prices now back to February levels.
The agency recalled that marketers reacted swiftly by increasing petrol prices when crude prices surged, pushing pump prices to between N1,350 and N1,500 per litre, while diesel climbed to about N2,000 per litre. However, despite the drop in crude prices, petrol is still selling for an average of N1,200 per litre, while some local refiners have only reduced ex-gantry prices to between N1,025 and N1,075 per litre.
While acknowledging that fuel prices are influenced by factors such as refining costs, foreign exchange rates, logistics and distribution expenses, the Commission said consumers should also benefit when production costs decline.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, stressed that although the Commission does not regulate fuel prices in a deregulated market, it has a legal duty to protect consumers from exploitative and unfair business practices.
He said marketers are often quick to raise prices whenever crude oil becomes more expensive but are slow to reduce them when costs fall, insisting that competition must work fairly in both directions.
Bello warned that the Commission would investigate and sanction any business found engaging in anti-competitive conduct, price exploitation or other practices that violate the Federal Competition and Consumer Protection Act.
He also encouraged consumers to report suspected cases of unfair pricing and anti-competitive behaviour through the Commission’s official complaint channels.
The warning comes as Brent crude recently dropped to $72.97 per barrel, its lowest level since February. On June 25, the Dangote Refinery also reduced its petrol ex-gantry price from N1,175 to N1,125 per litre, raising fresh expectations that pump prices should fall further across the country.
