Get Guardian on GoogleThe Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum refiners and marketers against retaining elevated petrol and diesel prices despite the recent decline in international crude oil prices.
It insisted that lower production costs must translate into cheaper fuel for Nigerian consumers.
The commission said it was closely monitoring developments in the international oil market to ensure that the sustained decline in crude prices, if maintained, reflects in domestic petroleum product prices.
The Executive Vice Chairman and Chief Executive Officer of FCCPC, Tunji Bello, gave the assurance in Abuja in response to public concerns over the continued high cost of petrol despite the recent moderation in global crude oil prices.
According to the Commission, Brent crude futures, which had climbed to about $115 per barrel in September, have fallen to below $90 this week, raising expectations of a possible reduction in domestic petrol prices.
However, petrol prices remain elevated across major Nigerian cities, averaging between N1,405 and N1,420 per litre in Abuja and between N1,325 and N1,370 in Lagos.
The prevailing prices represent a significant increase from N839 to N925 per litre recorded in Lagos and Abuja, respectively, on February 27, a day before the outbreak of the conflict involving the United States, Israel and Iran.
Petroleum marketers have repeatedly attributed the sharp increase in domestic fuel prices over the past eight months to volatility in international crude oil prices following the Middle East conflict and the subsequent disruption of shipping activities around the Strait of Hormuz.
The strategic waterway accounted for at least 25 per cent of global oil traffic, making disruptions to shipping activities a major concern for international energy markets.
However, the FCCPC said a sustained decline in crude oil prices should ease the cost of petroleum products and provide relief to consumers who have endured prolonged increases in transportation and household energy expenses.
Bello said refiners and marketers would have little justification for maintaining elevated petrol and diesel prices if the decline in international crude prices continued.
“If the decline in crude prices is sustained, there is no justification for refiners and marketers to continue to keep petrol and diesel prices relatively high. We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” he said.
He acknowledged the economic difficulties imposed on Nigerians by high fuel prices, assuring that the Commission would work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor developments in the domestic petroleum market.
According to him, the Commission would pay particular attention to wholesale and retail pricing practices to ensure that consumers benefit from any reduction in production and supply costs.
He added that the FCCPC would intervene where evidence of anti-competitive conduct or unfair market practices suggested that refiners and marketers were preventing lower costs from being passed on to consumers.
The Commission’s position comes amid growing concerns over the persistent pressure of high energy costs on household incomes, businesses and the wider economy.
