No Justification For High Fuel Prices, FCCPC Cautions Marketers

The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum refiners and marketers against retaining high petrol and diesel prices despite the recent decline in crude oil prices in the international market.

The Commission said it was monitoring developments in the global oil market to ensure that the reduction in crude prices translates into lower fuel costs for Nigerian consumers.

The Executive Vice Chairman of the FCCPC, Tunji Bello, gave the assurance on Tuesday in response to public concerns over the continued high cost of petroleum products despite falling international crude prices.

According to the Commission, Brent crude futures, which reached $115 per barrel in September, have dropped to below $90 this week.

However, petrol prices currently range between N1,405 and N1,420 per litre in Abuja, while consumers in Lagos pay between N1,325 and N1,370 per litre.

The FCCPC noted that on February 27, a day before the outbreak of the conflict involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel, while petrol sold between N839 and N925 per litre in Lagos and Abuja.

Petroleum marketers have attributed the sharp increase in fuel prices over the past eight months to fluctuations in international crude oil prices following the outbreak of the conflict in the Middle East and the subsequent blockade of the Strait of Hormuz, a major global oil transit route responsible for at least 25 per cent of worldwide oil traffic.

Bello, however, insisted that a sustained reduction in crude oil prices should result in lower costs for consumers, warning against refiners and marketers failing to reflect the savings in their pump prices.

“If the decline in crude prices is sustained, there is no justification for refiners and marketers to continue to keep petrol and diesel prices relatively high,” he said.

He added that the Commission expected reductions in the cost of petrol at the wholesale level to be passed on to consumers without unnecessary delays.

Bello acknowledged the financial difficulties Nigerians had faced as a result of elevated fuel prices, assuring consumers that the FCCPC would continue to monitor developments across the downstream petroleum sector.

He said the Commission would collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor wholesale and retail fuel prices.

The FCCPC chief executive further warned that the Commission would intervene where evidence of anti-competitive behaviour or unfair market practices was found to be preventing consumers from benefiting from declining costs.

“Where there is evidence of anti-competitive conduct or unfair practices that prevent consumers from benefiting from lower costs, we will take appropriate action within our mandate,” he said.