W’Bank lists Nigeria among worst culprits as global gas flaring hits six-year high

Petrol refiners, depot operators, marketers and retail outlet owners could face regulatory sanctions if investigations uncover evidence of consumer exploitation in Nigeria’s downstream petroleum sector, the Federal Competition and Consumer Protection Commission (FCCPC) has warned.
 
Meanwhile, global gas flaring climbed to a six-year high of 167 billion cubic metres (bcm) in 2025, marking the third consecutive year of increase despite global commitments to curb the practice, according to the latest Global Gas Flaring Tracker Report released by the World Bank.
 
The report identified Nigeria among the world’s worst gas-flaring nations, warning that the country had continued to burn significant volumes of associated gas despite longstanding efforts to commercialise the resource and improve domestic energy supply.
 
FCCPC said preliminary findings from its ongoing surveillance of the downstream market indicated that reductions in petrol prices by industry operators had been marginal despite the sharp decline in global crude oil prices over recent weeks.
 
Executive Vice Chairman and Chief Executive Officer of FCCPC, Tunji Bello, said the commission was concerned that consumers had yet to enjoy meaningful price relief despite a considerable fall in international oil prices.
 
According to Bello, while the FCCPC does not regulate petrol prices in Nigeria’s deregulated downstream market, it has a statutory responsibility under the Federal Competition and Consumer Protection Act 2018 to ensure businesses compete fairly and consumers are protected from exploitative practices.
 
“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 said. 
 
Global crude prices have eased significantly following the ceasefire between the United States (U.S.) and Iran and the reopening of the Strait of Hormuz, with Brent crude trading for $71.99 per barrel after peaking at about $120 in April. Prices have largely returned to levels recorded in February.
 
The earlier surge in crude prices prompted marketers and refiners to increase petrol pump prices nationwide to between N1,350 and N1,500 per litre, while diesel climbed to around N2,000 per litre as geopolitical tensions escalated between April and May.
 
In February, petrol sold for between N800 and N900 per litre.
  
Although some local refiners have since reduced their gantry prices to between N1,025 and N1,075 per litre, retail prices across much of the country still average around N1,200 per litre.
  
FCCPC acknowledged that domestic fuel prices were influenced by several commercial factors, including refining costs, exchange rate movements, logistics, financing and distribution expenses. However, it maintained that the decline in international crude prices should have translated into more noticeable savings for consumers.
 
Bello warned that market liberalisation “does not exempt businesses” from complying with competition laws.
 
“Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the commission will investigate and take appropriate enforcement action,” he said.
  
He also encouraged consumers to report suspected anti-competitive practices, misleading pricing and other unfair market behaviour through the Commission’s complaint channels.
 
Industry experts, however, argued that movements in crude oil prices alone would not determine domestic fuel prices.
 
Professor of Economics, Wumi Iledare, said calls for lower petrol prices were justified given the recent moderation in crude oil prices, but noted that fuel prices often exhibit what economists describe as “asymmetric price transmission”.
 
Similarly, Partner at Kreston Pedabo, Olufemi Idowu, said that although consumers expected lower fuel prices following the decline in crude prices, several domestic cost pressures remained.
 
Meanwhile, Chairman, Board of Trustees of the Community Development Committees of Niger Delta Oil and Gas Producing Areas, Joseph Ambakederimo, said the debate should extend beyond fuel prices to increasing Nigeria’s crude oil production.
 
He argued that the country’s present production of about 1.5 million barrels per day remains inadequate for an economy of Nigeria’s size, despite recent reports that output exceeded its Organisation of the Petroleum Exporting Countries (OPEC) quota.

According to the June 2026 report, global flaring volumes rose by 10bcm in 2025 alone, bringing cumulative increases since 2012 to 23bcm, or 16 per cent above the baseline year. The volume of gas flared last year was reportedly valued at $54 billion, enough to meet Africa’s entire yearly gas demand.
  
The World Bank described the continued destruction of associated gas as a waste of a valuable resource that could improve energy access, strengthen energy security and support economic development.
 
The report noted that global oil production expanded by only 3.3 per cent in 2025, while gas flaring increased at nearly twice that pace, suggesting that producers have failed to integrate adequate gas-capture infrastructure into oil production operations.
  
It added that global flaring intensity, the amount of associated gas burned per barrel of oil produced, worsened to 5.4 cubic metres per barrel in 2025 from 5.3 cubic metres a year earlier.
  
Since 2012, an estimated 2.2 trillion cubic metres of natural gas have been reportedly flared globally, exceeding half of the world’s total gas consumption in 2024. The report also noted that gas flared in 2025 surpassed the volume of Liquefied Natural Gas (LNG) exported through the Strait of Hormuz during the year, and that the volume was equivalent to Africa’s total annual gas consumption.
 
Nigeria was listed among nine countries responsible for 83 per cent of global gas flaring in 2025 despite accounting for only 46 per cent of global oil production. The other countries are Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria and the U.S. Together, they have accounted for the bulk of global flaring for more than 15 years.