FCCPC Warns Fuel Marketers Against Exploitative Pricing Amid Global Oil Price Decline

The Federal Competition and Consumer Protection Commission (FCCPC) has warned operators in Nigeria’s downstream petroleum sector against engaging in exploitative pricing following the decline in global crude oil prices.

In a statement issued on June 28, FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello said the commission’s market surveillance showed that reductions in gantry prices by refiners, depot operators, marketers, and retailers have been marginal despite the sharp fall in international crude oil prices.

Bello noted that while the FCCPC does not regulate fuel prices in Nigeria’s deregulated downstream market, it has the authority under the Federal Competition and Consumer Protection Act, 2018, to investigate and sanction anti-competitive, deceptive, or 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.

According to the commission, international crude oil 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, down from a peak of about $120 per barrel recorded during heightened tensions in the Gulf.

The FCCPC said crude prices have returned to levels seen in February, but domestic petrol prices have not declined proportionately. Petrol, which rose to between ₦1,350 and ₦1,500 per litre during the peak of the Middle East conflict, is still selling for around ₦1,200 per litre in many parts of Nigeria despite the easing of global tensions.