The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers against exploiting consumers through what it described as unjustifiably high petrol prices despite the sharp decline in global crude oil prices, saying current pump prices do not reflect prevailing international market realities.
The Commission, in a statement issued on Sunday following its ongoing surveillance of the downstream petroleum sector, said its review of gantry prices charged by local refiners, marketers, depot operators and retail outlet operators showed that recent price reductions were merely “token reductions” that failed to correspond with the significant fall in crude oil prices.
According to the FCCPC, crude oil prices have fallen to about $73 per barrel following the ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, a major global shipping route for crude oil. The Commission noted that the current crude price represents a sharp decline from the peak of about $120 per barrel recorded in April when geopolitical tensions in the Gulf escalated.
The agency said crude prices have effectively returned to levels recorded in February across the global market, yet consumers have not enjoyed corresponding reductions at filling stations.
It recalled that during the period of heightened hostilities between April and May, local refiners and petroleum marketers responded swiftly by increasing petrol pump prices across the country, with Premium Motor Spirit (PMS), also known as petrol, selling for between N1,350 and N1,500 per litre, while diesel rose to about N2,000 per litre.
The FCCPC stated that petrol sold for between N800 and N900 per litre in February before the surge in global crude prices.
It, however, noted that despite the subsequent decline in international crude prices, petrol is still being sold at an average of about N1,200 per litre nationwide, while some local refiners continue to maintain ex-gantry prices ranging between N1,025 and N1,075 per litre.
While acknowledging that domestic fuel pricing is influenced by several commercial factors—including refining costs, foreign exchange fluctuations, logistics, financing costs and distribution expenses—the commission maintained that competitive market forces should have resulted in more meaningful reductions for consumers.
The FCCPC said the continued disparity between declining crude oil prices and prevailing domestic petrol prices raises concerns over whether consumers are receiving the full benefits expected in a competitive and deregulated market.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, stressed that although the commission does not regulate or approve petrol prices under Nigeria’s deregulated downstream petroleum sector, it remains legally empowered to protect consumers against exploitative business practices.
“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market,” Bello said.
“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.
“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.”
Bello further stated that market liberalisation does not remove the responsibility of businesses to compete fairly or diminish consumers’ rights to fair treatment.
He warned that where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the commission would investigate and take appropriate enforcement action against offenders.
The FCCPC also encouraged consumers to report suspected anti-competitive conduct, misleading pricing practices and other forms of unfair market behaviour through the commission’s established complaint channels.
The commission’s warning comes as Brent crude, the international oil benchmark, traded at $72.97 per barrel on June 26, its lowest level since February.
The development also follows Dangote Refinery’s decision on June 25 to reduce its petrol ex-gantry price to N1,125 per litre from N1,175 per litre, a move expected to exert downward pressure on retail fuel prices across the country
