FCCPC Questions Fuel Prices, Warns Marketers Over Slow Cuts

By Opeyemi Adelakun

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the slow pace of fuel price reductions in Nigeria despite the sharp decline in global crude oil prices.

The commission said findings from its ongoing market surveillance revealed that local refiners, depot operators, marketers and filling station owners had only implemented marginal price cuts, which do not reflect the significant fall in international crude oil prices.

In a statement issued by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the commission noted that consumers have yet to enjoy the full benefits of the easing global oil market.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said operators in the downstream sector often increase pump prices immediately whenever crude oil prices rise but are slow to reduce prices when crude prices fall.

He stressed that although the commission does not regulate fuel prices in Nigeria’s deregulated downstream market, it has the responsibility to prevent anti-competitive conduct and protect consumers from unfair or exploitative business practices.

According to the commission, crude oil prices have dropped from about $120 per barrel during the Middle East crisis to around $73 per barrel, while petrol prices in Nigeria remain around N1,200 per litre despite local refiners reducing gantry prices to between N1,025 and N1,075 per litre.

While acknowledging that exchange rates, logistics, financing, refining and distribution costs also influence domestic fuel prices, the FCCPC maintained that market competition should have resulted in more substantial reductions at the pump.

The commission warned that where there is credible evidence of anti-competitive behaviour, price manipulation or consumer exploitation, it will investigate and take appropriate enforcement action.

FCCPC also urged Nigerians to report suspected cases of unfair pricing and anti-competitive practices as scrutiny of the downstream petroleum sector intensifies.