The federal government through Federal Competition and Consumer Protection Commission has accused fuel producers like Dangote Refinery and fuel marketers of consumer exploitation.
FCCPC alleged this against the backdrop of the sharp drop in global crude oil prices, which fell to about $73 per barrel on Wednesday, the lowest level since the US-Iran conflict began in February.
Despite the drop, fuel is still sold in Nigeria between N1,350 and N1,500 per litre in several parts of the country, while diesel prices climbed to about N2,000 per litre.
In a statement issued on Sunday by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the commission expressed dissatisfaction at the failure of fuel producers and marketers to bring the price down to reflect market realities.
“The Federal Competition and Consumer Protection Commission has expressed concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers.
“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 statement read in part.
“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,” the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello reportedly said in the statement.
