Nigeria’s consumer protection watchdog, the Federal Competition and Consumer Protection Commission (FCCPC), has warned petroleum refiners and marketers against retaining high petrol and diesel prices despite the recent decline in international crude oil prices.
The commission said it was monitoring developments in the global oil market to ensure that the reduction in crude prices translates into lower costs for consumers at filling stations.
FCCPC Chief Executive Officer, Tunji Bello, said sustained reductions in crude oil prices should lead to lower wholesale petroleum costs, leaving refiners and marketers with little justification for maintaining relatively high prices.
In a statement issued on Tuesday by the commission’s spokesperson, Ondaje Ijagwu, the FCCPC disclosed that Brent crude futures had fallen from a peak of $115 per barrel in September to below $90 this week.
Despite the decline, petrol prices remain significantly higher than they were before the outbreak of the conflict involving the United States, Israel and Iran.
According to the commission, petrol currently sells for between ₦1,405 and ₦1,420 per litre in Abuja, while motorists in Lagos pay between ₦1,325 and ₦1,370 per litre.
The FCCPC contrasted the current prices with those recorded on February 27, a day before the conflict began, when Brent crude futures closed at $72.48 per barrel.
At the time, petrol sold for between ₦839 and ₦925 per litre at filling stations in Lagos and Abuja.
Petroleum marketers have frequently attributed the sharp increase in domestic fuel prices over the past eight months to volatility in international crude oil prices following the outbreak of the conflict and the subsequent disruption of shipping activities around the Strait of Hormuz.
However, Bello said the recent easing of crude oil prices should translate into corresponding reductions in the cost of refined petroleum products.
“We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” he said.
He acknowledged the financial pressure that high fuel prices have placed on Nigerians, assuring consumers that the commission would sustain its monitoring of developments in the downstream petroleum market.
Bello added that the FCCPC would work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor wholesale and retail petroleum prices.
He said the collaboration would help ensure that consumers benefit from changing market conditions, particularly when international crude oil prices decline.
The FCCPC chief executive further warned that the commission would not hesitate to intervene where evidence of anti-competitive conduct or unfair business practices prevents consumers from enjoying the benefits of lower production and supply costs.
“Where evidence of anti-competitive conduct or unfair practices prevents consumers from benefiting from lower costs, we will take appropriate action within our mandate,” Bello said.
The latest intervention comes amid growing concerns over the continued burden of high petrol prices on Nigerian households, businesses and transportation costs.
Although the commission does not directly regulate or approve petroleum prices in Nigeria’s deregulated downstream market, it has the statutory responsibility to promote competition and protect consumers against exploitative and anti-competitive business practices under the Federal Competition and Consumer Protection Act, 2018.
