FCCPC says consumers may be exploited as fuel prices lag crude decline

Abdullateef Fowewe

The Federal Competition and Consumer Protection Commission (FCCPC) has raised alarm over what it describes as “token” reductions in local fuel gantry prices that fail to reflect a steep drop in global crude oil prices, warning that consumers may be unduly exploited.

Ondaje Ijagwu, Director of Corporate Affairs, said in a statement on Sunday that an ongoing FCCC surveillance of the downstream petroleum market found that gantry prices set by local refiners, marketers, depot operators and retail outlets showed only marginal cuts despite a marked fall in crude prices.

Reacting to the findings, FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello said the commission’s role is to safeguard competitive markets and consumer rights under the Federal Competition and Consumer Protection Act, 2018.

“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,” Bello said.

The Commission noted that crude oil prices fell to about $73 per barrel after a ceasefire accord between the U.S. and Iran two weeks ago and the reopening of the Straits of Hormuz, a decline from April’s peak near $120 per barrel.

Globally, crude prices have returned to levels seen in February.

The earlier spike in crude pushed local petrol (PMS) pump prices to between ₦1,350 and ₦1,500 and diesel to about ₦2,000 during the April–May escalation.

In February, petrol typically sold for about ₦800–₦900. Today, the FCCPC said the nationwide average for PMS stands at roughly ₦1,200, while some local refiners continue to post gantry prices between ₦1,025 and ₦1,075.

While acknowledging that domestic fuel pricing is affected by multiple commercial factors — including refining costs, foreign exchange rates, logistics, financing, and distribution expenses, the Commission said it expects market competition to hasten transmission of cost savings to consumers.

“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 added.

The FCCPC urged consumers to report suspected anti-competitive conduct, misleading pricing practices and other unfair market behaviour through its official complaint channels.