The Federal Competition and Consumer Protection Commission (FCCPC) has launched an investigation into what it describes as possible exploitative pricing in Nigeria’s downstream petroleum sector, following the failure of fuel prices to reflect the recent sharp decline in global crude oil prices.
In a statement issued by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said findings from its ongoing market surveillance revealed that recent reductions in gantry and retail petrol prices have been minimal and do not correspond with the significant drop in international crude oil prices.
According to the Commission, crude oil prices have fallen from a peak of about $120 per barrel in April to approximately $73 per barrel, following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, a key global oil shipping route. Despite this decline, petrol pump prices across Nigeria remain relatively high.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, expressed concern over what he described as an imbalance in pricing behaviour by operators in the petroleum sector.
He noted that marketers are usually quick to increase pump prices whenever crude oil prices rise, but are often slow to reduce prices when global oil prices fall, leaving consumers without the expected benefits of lower crude costs.
Bello clarified that while the FCCPC does not regulate fuel prices in Nigeria’s deregulated petroleum market, it has the legal responsibility to protect consumers from unfair, deceptive and exploitative business practices, as well as anti-competitive conduct.
The Commission acknowledged that domestic fuel prices are influenced by several factors, including foreign exchange rates, transportation and logistics costs, financing expenses, refining costs and distribution charges. However, it maintained that competitive market conditions should ordinarily result in more noticeable reductions in pump prices following a major decline in crude oil prices.
The FCCPC warned that if its investigation uncovers evidence of price manipulation, consumer exploitation or violations of the Federal Competition and Consumer Protection Act, it will take appropriate enforcement action against those found culpable.
The Commission also urged Nigerians to report suspected cases of price manipulation, anti-competitive practices and other unfair market behaviour through its official complaint channels.
The investigation has reignited public debate over the effectiveness of Nigeria’s deregulated petroleum market, with many consumers questioning why falling international crude oil prices have not translated into substantial relief at filling stations nationwide.