The Federal Competition and Consumer Protection Commission (FCCPC) has warned operators in Nigeria’s downstream petroleum sector against exploiting consumers by failing to reduce fuel prices despite the sharp decline in global crude oil prices.
The commission said ongoing market surveillance had shown that reductions in gantry prices by refiners, depot owners and marketers remained marginal and did not reflect the significant fall in international crude oil prices.
In a statement issued by FCCPC spokesperson Ondaje Ijagwu, the Executive Vice Chairman and Chief Executive Officer of the commission, Tunji Bello, said the agency would investigate and sanction companies found engaging in anti-competitive or exploitative practices.
Although the FCCPC stressed that it does not regulate fuel prices in Nigeria’s deregulated market, Bello said businesses still have a responsibility to treat consumers fairly.
“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,” he said.
Bello expressed concern that marketers often increase pump prices quickly whenever crude oil prices rise but delay passing on the benefits when 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.
The FCCPC noted that global crude oil prices had fallen sharply following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.
According to the commission, crude prices dropped to around 73 dollars per barrel from highs of about 120 dollars recorded during heightened tensions in the Middle East.
Despite the decline, the agency said domestic fuel prices have remained high.
The earlier surge in crude prices had pushed petrol prices to between N1,350 and N1,500 per litre, while diesel prices climbed to nearly N2,000 per litre.
Currently, petrol sells for about N1,200 per litre nationwide, even as some refiners have reduced gantry prices to between N1,025 and N1,075 per litre.
Bello acknowledged that several factors influence domestic fuel prices, including foreign exchange rates, logistics costs, financing expenses and distribution charges. However, he argued that lower input costs should have translated into faster relief for consumers.
“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 otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”
The FCCPC urged consumers to report suspected price manipulation, misleading pricing practices and other forms of unfair market conduct through its official complaint channels.
The commission said every credible complaint would receive appropriate attention as it intensifies efforts to protect consumers and promote competition in the downstream petroleum sector.
