…Vows to sanction defaulting marketers

The Federal Competition and Consumer Protection Commission (FCCPC) has said the recent decline in global crude oil prices should translate into lower retail prices of Premium Motor Spirit (PMS), insisting that Nigerian consumers deserve to benefit from easing international oil prices.

The commission, in a statement issued on Sunday, said its ongoing surveillance of the downstream petroleum sector indicates that recent reductions in petrol prices by refiners, depot operators and marketers have not been commensurate with the sharp decline in global crude oil prices.

According to the FCCPC, international crude prices have fallen to about $73 per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, after peaking at about $120 per barrel during heightened geopolitical tensions in the Middle East.

The commission recalled that marketers reacted almost immediately by raising petrol prices when crude oil prices surged, pushing pump prices to between N1,350 and N1,500 per litre in many parts of the country.

It noted, however, that despite the significant drop in crude prices, petrol is still retailing at an average of about N1,200 per litre, raising concerns over the pace at which consumers are benefiting from lower international input costs.

While acknowledging that fuel pricing in Nigeria’s deregulated downstream sector is influenced by a range of commercial factors—including refining costs, foreign exchange fluctuations, transportation, financing and distribution expenses—the FCCPC stressed that competitive market dynamics should ensure that cost savings are passed on to consumers.

Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said that although the commission does not regulate petrol prices, it has a statutory responsibility under the Federal Competition and Consumer Protection Act to ensure markets operate fairly and consumers are protected from exploitative practices.

“Our responsibility under the Federal Competition and Consumer Protection Act is to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices.

“We are concerned that while marketers often respond swiftly by increasing pump prices whenever crude oil prices rise, consumers are made to wait much longer before benefiting when crude prices fall. Competitive markets should work fairly in both directions,” Bello said.

He warned that the commission would investigate any credible evidence of anti-competitive behaviour, exploitative pricing, price fixing or other violations of the law and would not hesitate to take appropriate enforcement action where necessary.

Bello also urged consumers to report suspected cases of price manipulation, misleading pricing practices and other forms of unfair market conduct through the commission’s established complaint channels.

The FCCPC’s intervention comes days after Dangote Refinery reduced its ex-depot price of petrol from N1,175 to N1,125 per litre, a move that has heightened expectations of further reductions in pump prices across the country.

The commission reiterated that while market liberalisation gives operators the freedom to determine prices based on prevailing economic conditions, the benefits of declining global crude oil prices should be reflected in retail fuel prices.