Nigerians are yet to feel the full benefit of a steep fall in global crude oil prices, with the Federal Competition and Consumer Protection Commission (FCCPC) threatening to sanction oil marketers exploiting consumers.
In a statement on Sunday by its Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC stated that 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.
TheFact Daily reports that global crude oil prices have fallen sharply to $73 per barrel, down from a peak of $120 in April, after a ceasefire agreement between the United States and Iran two weeks ago reopened the strait of Hormuz. The price has now returned to February levels.
Yet, petrol is still selling at an average of N1,200 per litre across Nigeria, compared to between N800 and 900 in February. Some local refiners, especially the Dangote Refinery have set gantry prices between N1.025 and N1.075. Diesel, which climbed to N2,000 per litre as hostilities in the Gulf intensified between April and May, has also seen only little reductions.
When crude prices were rising earlier in the year, markers responded quickly, pushing petrol prices between N1,350 and 1,500 within weeks.
FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, acknowledged that the Commission does not set or approve petroleum prices in a deregulated market, but said its mandate under the Federal Competition and Consumer Protection
Commission Act, 2018, squarely covers anti-competitive and exploitative business conduct.
“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 benefit significantly when crude prices fall,” Mr. Bello said. “Competitive markets must work fairly in both directions.”
He added: “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.”
The FCCPC said it recognises that domestic fuel prices are shaped by a range of factors beyond crude costs, including refining expenses, foreign exchange movement, logistics and financing, but maintained that competitive market dynamics should by now have passed some of those savings on to customers.
Mr. Bello urged Nigerians to report suspected anti-competitive conduct, misleading pricing and other unfair market practices through the Commission’s complaint channels.
