The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern that Nigerians are not benefiting from the recent decline in global crude oil prices, despite a significant drop in international oil markets.
According to the commission, its market surveillance found that local refiners, depot operators, marketers, and filling stations have only made marginal reductions in petrol prices, which do not reflect the sharp fall in crude oil prices.
The Executive Vice Chairman of the FCCPC, Tunji Bello, said that while the commission does not regulate fuel prices in Nigeria’s deregulated market, it is responsible for protecting consumers from unfair and exploitative business practices under the Federal Competition and Consumer Protection Act, 2018.
Bello noted that fuel marketers are often quick to increase pump prices when crude oil prices rise but slow to reduce prices when crude oil prices fall.
Global crude oil prices recently dropped to about $73 per barrel after easing geopolitical tensions in the Middle East. However, petrol is still selling for around ₦1,200 per litre in many parts of Nigeria, even though some local refiners’ gantry prices now range between ₦1,025 and ₦1,075 per litre.
The FCCPC acknowledged that factors such as exchange rates, logistics, financing, refining, and distribution costs affect domestic fuel prices. However, it maintained that competitive market conditions should have resulted in more substantial reductions at the pump.
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The commission warned that it would investigate any evidence of anti-competitive practices, price manipulation, or consumer exploitation, and take enforcement action where necessary.
It also urged Nigerians to report suspected unfair market practices through its official complaint channels.
The development is expected to reignite debate over the effectiveness of Nigeria’s deregulated petroleum market and why falling global crude oil prices have not led to corresponding reductions in local fuel prices.
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