The Federal Competition and Consumer Protection Commission (FCCPC) has expressed outrage over what it described as the continued exploitation of Nigerians by oil marketers despite the sharp drop in global crude oil prices, warning that operators found engaging in anti-consumer practices will face sanctions.
The Commission said findings from its ongoing surveillance of the downstream petroleum sector showed that while international crude prices have fallen significantly, marketers have only made marginal reductions in pump prices, leaving consumers without the expected relief.
In a statement issued on Sunday by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the Commission said its review of gantry prices among local refiners, depot operators, marketers and retail outlets revealed that the reductions recorded were not commensurate with the steep decline in crude oil prices on the global market.
Reacting to the development, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, stressed that although the Commission does not regulate fuel prices in Nigeria’s deregulated downstream sector, it has a statutory duty to ensure fair competition and protect consumers from exploitation.
“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market,” Bello said.
“Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices.”
He expressed concern that marketers were always quick to increase fuel prices whenever crude oil prices rose, but had failed to reduce prices at the same pace despite the recent decline in global oil prices.
“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, crude oil prices dropped to about 73 dollars per barrel following the ceasefire between the United States and Iran and the reopening of the Straits of Hormuz, down from a peak of about 120 dollars per barrel recorded in April.
It recalled that the earlier surge in crude prices triggered an immediate increase in domestic pump prices, with petrol selling between N1,350 and N1,500 per litre, while diesel climbed to about N2,000 per litre during the height of the Middle East tensions.
The Commission noted that despite the decline in crude prices, petrol is still being sold at an average of N1,200 per litre across the country, while some local refiners have fixed gantry prices between N1,025 and N1,075 per litre.
FCCPC acknowledged that domestic fuel prices are influenced by several factors, including refining costs, foreign exchange fluctuations, logistics, financing and distribution expenses.
However, it maintained that market competition should naturally result in lower prices for consumers whenever operational costs decline.
Bello warned that market deregulation does not give operators the licence to exploit consumers or engage in anti-competitive conduct.
“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment.
“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 warned.
The FCCPC also urged Nigerians to continue reporting suspected price manipulation, anti-competitive practices and other forms of unfair market behaviour through its official complaint channels.
Tags: FCCPC, Tunji Bello, Fuel Price, Petrol, Crude Oil, Oil Marketers, PMS, Nigeria, Consumer Protection, Downstream Petroleum
Meta Description: FCCPC warns oil marketers against exploiting Nigerians as crude oil prices fall globally, saying pump price reductions remain insignificant and violators risk sanctions.
