Nigeria’s consumer protection watchdog, the Federal Competition and Consumer Protection Commission (FCCPC), has raised fresh concerns over the continued high cost of petrol across the country despite a significant drop in global crude oil prices. The commission warned that fuel marketers and other operators in the downstream petroleum sector could face regulatory action if investigations reveal evidence of unfair pricing practices that disadvantage consumers.
According to the FCCPC, preliminary findings from its ongoing monitoring of the petroleum market show that while international oil prices have fallen considerably in recent weeks, reductions in petrol prices at depots and filling stations have remained minimal. The development has sparked concerns about whether consumers are receiving the full benefits of lower crude oil prices, especially at a time when many Nigerians are struggling with rising living costs.
Speaking on the issue, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, expressed dissatisfaction with what he described as an imbalance in market reactions to crude oil price movements. He noted that fuel marketers are often quick to increase pump prices whenever crude oil prices rise but tend to delay passing on cost savings when prices decline. Bello stressed that although fuel pricing is determined by market forces in a deregulated system, businesses must still operate fairly and avoid practices that exploit consumers.
The commission pointed out that international oil prices have dropped sharply following easing tensions in the Middle East, including improved stability in major shipping routes. Yet, petrol prices in many parts of Nigeria remain around N1,200 per litre, despite reports that some local refiners are selling products at gantry prices between N1,025 and N1,075 per litre. While factors such as exchange rates, transportation, financing, refining, and distribution costs affect pricing, the FCCPC believes current market conditions should have resulted in more noticeable relief for consumers.
The warning has reignited debates about the effectiveness of Nigeria’s deregulated petroleum market since the removal of fuel subsidies. Consumer groups have long argued that increases in global oil prices are reflected almost immediately at the pumps, while price reductions often take much longer to reach ordinary Nigerians. As pressure mounts on industry operators, the FCCPC has encouraged members of the public to report suspected cases of price manipulation, anti-competitive behaviour, and consumer exploitation, promising to investigate and take appropriate action where necessary.
source: dailytrust
