Crude Price Fall: FCCPC to sanction profiteers over exploitation in Nigeria’s oil market
The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over findings from its ongoing surveillance of the downstream petroleum market, which suggest possible exploitation of consumers by market operators.
In a statement, the Commission said its review of gantry prices charged by local refiners, marketers, depot operators, and retail outlet operators revealed only marginal reductions in fuel prices—cuts that are not commensurate with the sharp decline in global crude oil prices.
Reacting to the development, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, stated:
“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.”
He added: “We are concerned that while dealers often respond swiftly by increasing pump prices whenever crude prices rise, it is curious that consumers are yet to benefit significantly from falling crude prices. Competitive markets must work fairly in both directions.”
Following a ceasefire agreement between the United States and Iran two weeks ago, alongside the reopening of the Strait of Hormuz, global crude oil prices have dropped to about $73 per barrel, down sharply from the peak of $120 per barrel recorded in April.
Crude prices across the global market have now returned to levels last seen in February.
During the earlier spike in crude prices, local refiners and marketers moved quickly to raise pump prices nationwide, with petrol selling for between ₦1,350 and ₦1,500 per litre, while diesel climbed to about ₦2,000 per litre, as tensions escalated in the Gulf between April and May.
Mr. Bello further stated: “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.”
He encouraged consumers to continue reporting suspected anti-competitive conduct, misleading pricing practices and other forms of unfair market behaviour through the Commission’s established complaint channels.
