The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers against unfair pricing practices, expressing concern that consumers are not benefiting from the recent decline in global crude oil prices.
In a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said findings from its ongoing surveillance of the downstream petroleum sector revealed that reductions in petrol prices have been minimal despite a significant drop in international crude oil prices.
According to the Commission, local refiners, depot operators, marketers and retail outlet operators have only made marginal adjustments to fuel prices, leaving consumers to bear costs that are no longer justified by prevailing market conditions.
“The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers,” the statement read.
“A review of the gantry prices of local refiners, marketers, depot operators and retail outlet operators revealed token reductions in prices that are not commensurate with the steep fall in crude prices in the global market.”
The Commission recalled that during the surge in global crude oil prices between April and May, driven by escalating hostilities in the Gulf region, local refiners and marketers quickly increased pump prices across the country.
At the time, petrol sold for between ₦1,350 and ₦1,500 per litre, while diesel prices climbed to as high as ₦2,000 per litre.
Despite the subsequent easing of crude oil prices in the international market, the FCCPC noted that petrol is still being sold at an average of ₦1,200 per litre nationwide, even though some local refiners have reduced their gantry prices to between ₦1,025 and ₦1,075 per litre.
Commenting on the development, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the Commission was worried by what appeared to be a one-sided reaction to fluctuations in global crude oil prices.
According to Bello, operators in the downstream petroleum sector are often quick to increase pump prices when crude oil prices rise but are slow to reduce prices when market conditions improve.
“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,” Bello said.
“Competitive markets must work fairly in both directions.”
The FCCPC reiterated its commitment to monitoring pricing practices in the downstream petroleum sector and ensuring that consumers are protected from exploitative market behaviour.
