FCCPC Probes Fuel Pricing Amid Falling Crude Costs
The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over possible consumer exploitation in Nigeria’s downstream petroleum sector, noting that fuel prices have not declined significantly despite a sharp drop in global crude oil prices.
In a statement by Director of Corporate Affairs Ondaje Ijagwu, the commission said its surveillance showed only token reductions by refiners, depot operators, and marketers, which were not commensurate with the steep fall in international crude prices.
“A review of gantry prices revealed token reductions in prices that are not commensurate with the steep fall in crude prices in the global market,” the FCCPC said.
Executive Vice Chairman Tunji Bello added that operators often raise pump prices quickly when crude rises but delay passing on benefits when prices fall.
“Competitive markets must work fairly in both directions,” he stressed.
Global crude prices have dropped sharply to $73 per barrel, down from about $120 in April, following a US-Iran ceasefire and reopening of the Strait of Hormuz.
Yet petrol still averages ₦1,200 per litre, with gantry prices between ₦1,025–₦1,075, far above February’s ₦800–₦900 range.
The FCCPC acknowledged that domestic fuel prices are influenced by forex fluctuations, logistics, financing, refining, and distribution costs, but insisted that competitive forces should have led to more substantial reductions.
Bello warned that the commission would investigate and take enforcement action if credible evidence of anti-competitive conduct or consumer exploitation emerges.
He urged Nigerians to report suspected cases of price manipulation and unfair practices.
The probe is expected to reignite debate over Nigeria’s deregulated petroleum market, with consumer groups accusing marketers of implementing price hikes immediately but delaying reductions whenever global conditions improve.