The Federal Competition and Consumer Protection Commission (FCCPC) has called on petroleum marketers to reduce the retail price of Premium Motor Spirit (PMS), saying Nigerian consumers should benefit from the recent decline in global crude oil prices.
In a statement, the commission said its monitoring of the downstream petroleum sector showed that recent reductions in petrol prices by refiners, depot operators and marketers have not matched the sharp drop in international crude oil prices.
According to the FCCPC, global crude oil prices have fallen to about 73 dollars per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, after previously rising to around 120 dollars per barrel during heightened Middle East tensions.
The commission noted that fuel marketers reacted quickly by increasing petrol prices when crude oil surged, with pump prices reaching between N1,350 and N1,500 per litre in many parts of Nigeria. However, despite the fall in crude prices, petrol is still selling for an average of about N1,200 per litre, raising concerns about whether consumers are receiving the benefits of lower international costs.
The FCCPC acknowledged that petrol pricing in Nigeria’s deregulated downstream sector is influenced by factors such as refining costs, foreign exchange rates, transportation, financing and distribution expenses. Nevertheless, it maintained that fair competition should ensure cost savings are reflected in pump prices.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said although the commission does not fix petrol prices, it has a legal responsibility under the Federal Competition and Consumer Protection Act to promote fair competition and protect consumers from exploitative practices.
He said marketers often increase pump prices almost immediately whenever crude oil prices rise, but consumers are forced to wait much longer before enjoying reductions when crude prices fall, stressing that competitive markets should work fairly in both directions.
Bello warned that the commission would investigate credible reports of anti-competitive conduct, exploitative pricing, price-fixing or other violations of the law, adding that enforcement measures would be taken where necessary.
He also encouraged Nigerians to report suspected cases of price manipulation, misleading pricing practices and other unfair market behaviour through the commission’s complaint channels.
The FCCPC’s position comes days after Dangote Refinery reduced its ex-depot petrol price from N1,175 to N1,125 per litre, fuelling expectations of further reductions in pump prices across the country.
The commission reiterated that while deregulation allows operators to determine prices based on prevailing market conditions, consumers should also benefit when international crude oil prices decline.
