Agency Report
The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over what it described as the failure of petroleum marketers to pass on the benefits of falling global crude oil prices to Nigerian consumers, warning that exploitative practices will attract regulatory action.
In a statement issued on Sunday by Ondaje Ijagwu, Director of Corporate Affairs, the commission said its monitoring of the downstream petroleum sector shows that reductions in petrol prices have been minimal despite a significant decline in international crude oil prices.
FCCPC noted that following the recent US–Iran ceasefire accord and reopening of the Straits of Hormuz, crude prices fell to $73 per barrel, down sharply from the April peak of $120. Yet, petrol prices in Nigeria remain high, averaging ₦1,200 per litre, compared to ₦800–₦900 in February.
The commission observed that while local refiners and marketers swiftly raised pump prices during the earlier spike, they have been slow to reduce prices now that crude costs have dropped.
Executive Vice-Chairman and CEO Tunji Bello stressed that although FCCPC does not regulate petroleum prices in a deregulated market, it has a statutory duty to protect consumers from exploitative practices.
“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,” Bello said.
He added: “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.” NAN
