The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned petrol marketers against unfair pricing practices, warning that consumers deserve to benefit from the recent drop in global crude oil prices.
In a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said its review of prevailing gantry and retail prices showed that the reduction in fuel prices has not matched the sharp decline in international crude oil prices.
The Commission noted that when crude prices surged earlier in the year, local refiners and marketers quickly increased pump prices nationwide.
Recall that petrol prices climbed to between ₦1,350 and ₦1,500 per litre, while diesel sold for as much as ₦2,000 per litre during heightened tensions in the Gulf between April and May.
According to the FCCPC, petrol is still selling at an average of ₦1,200 per litre nationwide, while some local refiners have fixed gantry prices between ₦1,025 and ₦1,075.
The Commission said its ongoing surveillance of the downstream petroleum sector suggests possible exploitation of consumers, as price reductions by refiners, marketers and depot operators remain minimal despite the significant drop in crude oil prices globally.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, expressed concern over what he described as a one-sided reaction to fluctuations in crude prices.
He noted that operators in the downstream sector are often quick to raise pump prices whenever crude oil prices rise but slow to pass on the benefits when prices fall.
“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,” Bello said.
He added that while price increases are usually implemented immediately when crude prices rise, it remains troubling that consumers are yet to feel significant relief now that global crude prices have declined, stressing that competitive markets must work fairly in both directions.
ALSO READ: Airfare Hike: Promising Hope for Nigerians as FCCPC Launches Investigation Into Alleged Exploitation
