The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers, depot operators and refiners to reduce petrol prices in line with the sharp decline in global crude oil prices or face regulatory sanctions over alleged consumer exploitation.
The Commission said its ongoing surveillance of the downstream petroleum sector showed that recent reductions in petrol prices were insignificant despite crude oil falling to about $73 per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.
According to the FCCPC, petrol, which sold for between ₦800 and ₦900 per litre in February, surged to between ₦1,350 and ₦1,500 per litre during the Middle East tensions.
Although crude oil prices have since returned to February levels, petrol is still selling for an average of ₦1,200 per litre, while some local refiners’ ex-depot prices range between ₦1,025 and ₦1,075 per litre.
The Commission acknowledged that domestic fuel prices are influenced by factors such as foreign exchange fluctuations, refining costs, logistics, financing and distribution expenses, but maintained that consumers deserve to benefit from lower international crude prices through fair market competition.
Tunji Bello, FCCPC executive vice chairman and chief executive officer, clarified that although the Commission does not regulate petrol prices in Nigeria’s deregulated downstream sector, it has a statutory responsibility to protect consumers from unfair, deceptive and exploitative practices.
Bello questioned why marketers quickly increase pump prices whenever crude oil rises but delay reducing prices when global oil prices decline.
He warned that market deregulation does not exempt businesses from competing fairly or respecting consumers’ rights.
The FCCPC said it would investigate and sanction any company found engaging in anti-competitive conduct, price manipulation or other practices that violate the Federal Competition and Consumer Protection Act.
The Commission also urged Nigerians to report suspected cases of price manipulation and unfair market practices through its official complaint channels.
The warning comes days after the Dangote Refinery reduced its ex-depot petrol price from ₦1,175 to ₦1,125 per litre, following the continued decline in international crude oil prices.