By our Reporter
The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over what it described as the continued exploitation of consumers by operators in Nigeria’s downstream petroleum sector despite the recent decline in global crude oil prices.
The Commission said findings from its ongoing surveillance of the petroleum market indicate that reductions in gantry prices by local refiners, depot operators, marketers and retail outlet operators have been minimal and do not reflect the sharp fall in international crude oil prices.
In a statement, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, stressed that although the Commission does not regulate or approve fuel prices in the deregulated downstream sector, it has a statutory responsibility to ensure fair competition and protect consumers from exploitative practices.
“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,” Bello said.
He noted that while marketers have consistently increased pump prices almost immediately whenever global crude prices rise, consumers have yet to enjoy corresponding reductions now that international oil prices have declined.
“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 added.
The Commission disclosed that it would not hesitate to sanction any operator found engaging in anti-competitive or exploitative practices in violation of the Federal Competition and Consumer Protection Act, 2018.
According to the FCCPC, global crude oil prices have dropped significantly to about 73 dollars per barrel following the ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz. The current price represents a sharp decline from the peak of 120 dollars per barrel recorded in April, with international prices now returning to levels last seen in February.
The earlier surge in crude prices had prompted local refiners and marketers to raise pump prices nationwide, with Premium Motor Spirit (PMS), also known as petrol, selling between ₦1,350 and ₦1,500 per litre, while diesel climbed to about ₦2,000 per litre during heightened tensions in the Gulf between April and May.
Despite the subsequent fall in crude oil prices, the Commission observed that petrol is still being sold at an average of ₦1,200 per litre across the country, although some local refiners have adjusted their gantry prices to between ₦1,025 and ₦1,075 per litre.
The FCCPC reiterated its commitment to promoting fair competition and protecting Nigerian consumers, warning that it would closely monitor developments in the downstream petroleum sector and take appropriate enforcement action against profiteering and other unfair market practices.
