FCCPC Warns Fuel Marketers Against Exploiting Nigerians Over High Petrol Prices

The Federal Competition and Consumer Protection Commission (FCCPC) has warned fuel marketers and other operators in Nigeria's downstream petroleum sector against taking advantage of consumers by refusing to reduce petrol prices despite the sharp drop in global crude oil prices.

In a statement released on Sunday, June 28, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the commission's ongoing monitoring of the downstream petroleum market showed that recent reductions in gantry prices by local refiners, marketers, depot operators, and filling stations have been too small and do not reflect the significant decline in international crude oil prices.

Bello explained that although the FCCPC does not fix or regulate fuel prices in Nigeria's deregulated petroleum market, the commission has the legal responsibility to ensure fair competition and protect consumers from unfair, deceptive, and exploitative business practices under the Federal Competition and Consumer Protection Act (FCCPA), 2018.

He warned that the commission would investigate and sanction any company or operator found engaging in anti-competitive behaviour or exploiting consumers through unjustified fuel pricing.

According to Bello, marketers are usually quick to increase petrol prices whenever global crude oil prices rise. However, he questioned why consumers are not enjoying similar benefits now that crude oil prices have fallen sharply. He stressed that a competitive market should work fairly in both situations, ensuring that price increases and reductions are reflected at the pump.

The FCCPC boss noted that international crude oil prices have dropped significantly to around 73 dollars per barrel following the ceasefire between Israel and Iran, the easing of tensions in the Middle East, and the reopening of the Strait of Hormuz. He said this is a major decline compared to the peak of about 120 dollars per barrel recorded during the height of the regional conflict.

Despite the fall in crude oil prices, the commission observed that petrol prices across Nigeria have remained largely unchanged. While crude oil prices have returned to levels last seen in February, many filling stations are still selling petrol for around ₦1,200 per litre, even though prices had previously climbed to between ₦1,350 and ₦1,500 per litre during the Middle East crisis. Diesel prices had also risen to about ₦2,000 per litre during that period.

With global oil prices now much lower, many Nigerians expect petrol prices to drop further, with some industry observers predicting that the pump price could fall below ₦1,000 per litre if the reduction in international crude oil prices is fully reflected in the domestic market.

The FCCPC reaffirmed its commitment to protecting consumers and ensuring that businesses operate fairly, warning that any attempt to deny Nigerians the benefits of lower global crude oil prices could attract regulatory action.