FCCPC Issues Stern Warning To Marketers Over Petrol Prices 

Blessing Bello, Reporting

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stark warning to downstream petroleum operators, admonishing them against exploiting Nigerian consumers through a refusal to mirror the sharp decline in global crude oil prices at the pumps.

In a statement released on Sunday, the Commission’s Executive Vice Chairman and Chief Executive, Tunji Bello, expressed dismay over the marginal reductions in gantry prices observed by local refiners, marketers, depot operators, and retail outlets. He noted that these reductions fall far short of what is warranted by current global crude oil prices.

Mr. Bello, however, clarified that while the FCCPC does not regulate or approve petroleum prices in the country’s deregulated downstream market, it will not hesitate to investigate and sanction any operator found to be engaging in anti-competitive, deceptive, or exploitative practices. Such actions, he stressed, would be in violation of the Federal Competition and Consumer Protection Act (FCCPA), 2018.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. 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,” Mr. Bello stated.

He further highlighted the discrepancy in market behaviour, noting: “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.”

The FCCPC boss pointed out that international crude prices have plummeted to approximately $73 per barrel, following a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz. This marks a significant drop from the peak of about $120 per barrel recorded in April at the height of tensions in the Gulf. As of the time of filing this report, Brent crude futures stood at $72.44 a barrel, a steep decline from over $100 at the pre-war level.

The Commission observed that the earlier surge in crude prices had prompted local refiners and marketers to increase pump prices rapidly, with petrol selling for between N1,350 and N1,500 per litre. At the same time, diesel climbed to about N2,000 per litre as geopolitical tensions escalated between April and May. By comparison, Premium Motor Spirit (PMS) sold for between N800 and N900 per litre in February.

However, despite the reversal in global crude prices, the FCCPC noted that petrol currently sells at an average of about N1,200 per litre nationwide, while some local refiners have fixed gantry prices between N1,025 and N1,075 per litre.

While acknowledging that domestic fuel prices are influenced by several commercial variables – including refining costs, foreign exchange movements, logistics, financing, and distribution expenses – Mr. Bello maintained that competitive market forces should have enabled consumers to benefit more quickly from lower input costs.

He stressed that market liberalisation does not absolve businesses of their responsibility to compete fairly or deny consumers the right to fair pricing.

“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment,” he said. “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.”

The FCCPC has urged consumers to report suspected anti-competitive conduct, misleading pricing practices, and other forms of unfair market behaviour through the commission’s established complaint channels, assuring that every credible complaint would receive appropriate attention.