The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the continued high cost of petrol across Nigeria despite a sharp decline in global crude oil prices, warning that operators in the downstream petroleum sector could face regulatory action if found to be exploiting consumers.
In a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said findings from its ongoing surveillance of the downstream market revealed that refiners, depot operators, marketers and filling station owners had made only marginal reductions in fuel prices despite the significant drop in international crude oil prices.
According to the Commission, a review of current gantry and retail prices indicates that Nigerian consumers are yet to enjoy the full benefits of lower crude oil prices in the global market.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the Commission was disturbed by what appeared to be an imbalance in the way operators respond to fluctuations in crude oil prices.
He observed that while marketers are often quick to increase pump prices whenever crude oil prices rise, they are much slower to reduce prices when the global market trends downward.
Bello stressed that although the FCCPC does not regulate petroleum prices in Nigeria’s deregulated downstream sector, it is empowered by the Federal Competition and Consumer Protection Act, 2018, to ensure fair competition and protect consumers from exploitative and anti-competitive practices.
He maintained that a competitive market should reflect price movements in both directions, insisting that consumers deserve to benefit from declining crude oil prices just as they bear the burden when prices rise.
The Commission’s position comes as international crude oil prices have fallen sharply following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, easing fears of supply disruptions in the global oil market.
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Crude oil, which climbed to about $120 per barrel in April during heightened tensions in the Middle East, has since dropped to around $73 per barrel. However, petrol prices in Nigeria remain around ₦1,200 per litre on average, while some local refiners still sell at gantry prices ranging between ₦1,025 and ₦1,075 per litre.
The FCCPC acknowledged that domestic fuel pricing is influenced by several factors, including foreign exchange rates, logistics, financing costs, refining expenses and distribution charges. Nevertheless, it argued that prevailing market conditions should have resulted in more noticeable reductions at the pump.
Bello warned that market liberalisation does not exempt businesses from complying with competition laws or treating consumers fairly.
He said the Commission would not hesitate to investigate and sanction any conduct that undermines competition, manipulates prices or violates the provisions of the Federal Competition and Consumer Protection Act.
The FCCPC also urged Nigerians to report suspected cases of price manipulation, anti-competitive practices and other unfair business conduct through its official complaint channels.
The Commission’s intervention is expected to reignite debate over the effectiveness of Nigeria’s deregulated petroleum market, as consumers continue to question why falling international crude oil prices have not translated into corresponding reductions in fuel prices nationwide.