FCCPC warns marketers not to exploit consumers amid falling global crude oil prices.

*Bello laments slow pump price reductions, cautions profiteers

James Emejo in Abuja

Executive Vice Chairman and Chief Executive of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, warned operators in the downstream petroleum sector yesterday that they should not exploit consumers by failing to adjust retail fuel prices in line with the steep fall in global crude oil prices.

Bello said that the commission’s ongoing monitoring of the downstream market had shown that reductions in gantry prices by local refiners, marketers, depot operators and retail outlets have been marginal and far below what the current global crude oil prices would normally justify.

In a statement issued by FCCPC spokesman Mr. Ondaje Ijagwu, he stressed that while the commission does not regulate or approve petroleum prices in the country’s deregulated downstream market, it will investigate and sanction operators found to be engaging in anti‑competitive, deceptive or exploitative practices that violate the Federal Competition and Consumer Protection Act (FCCPA), 2018.

Bello said, “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.”

“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.”

According to the FCCPC boss, international crude prices have fallen sharply to about $73 per barrel after the ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, compared with a peak of about $120 per barrel recorded in April at the height of tensions in the Gulf.

The commission noted that crude prices have effectively returned to their February levels, yet the decline has not been matched by a commensurate reduction in domestic fuel prices.

The earlier surge in crude prices prompted local refiners and marketers to increase pump prices rapidly, with petrol selling for between N1,350 and N1,500 per litre, while diesel climbed to about N2,000 per litre as geopolitical tensions escalated between April and May. By comparison, PMS sold for between N800 and N900 per litre in February.

However, despite the reversal in global crude prices, the FCCPC observed 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, 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.

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

Bello further 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.