The Federal Competition and Consumer Protection Commission (FCCPC) has warned oil refiners and marketers against keeping petrol and diesel prices high despite the recent crash in international crude oil prices.
The commission insisted that Nigerians must begin to enjoy the benefits of falling crude prices, warning that consumers must not be denied the gains through inflated pump prices.
The FCCPC Executive Vice Chairman, Tunji Bello, gave the warning in a statement issued on Tuesday by the commission’s Director of Corporate Affairs, Ondaje Ijagwu, following growing complaints over the high cost of petrol.
Bello said the commission was closely monitoring developments in the international oil market to ensure that the decline in crude prices translated into cheaper petroleum products at filling stations.
He warned that if the downward trend in crude prices was sustained, refiners and marketers would have no justification for maintaining high petrol and diesel prices.
The FCCPC chief said the commission expected wholesale petrol costs to ease and the resulting savings to be passed on to consumers without unnecessary delay.
Latest market reports indicate that Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 this week.
However, despite the decline, petrol prices remain between N1,405 and N1,420 per litre in Abuja, while motorists in Lagos pay between N1,325 and N1,370 per litre.
The commission recalled that on February 27, a day before the war involving the United States, Israel and Iran began, Brent crude traded at $72.48 per barrel, while petrol sold for between N839 and N925 per litre in Lagos and Abuja.
Marketers have repeatedly blamed the sharp increase in petrol prices over the past eight months on international crude oil volatility following the outbreak of the Middle East conflict and the subsequent blockade of the Strait of Hormuz, a major global oil shipping route.
But Bello said the commission would not allow anti-competitive practices or unfair pricing arrangements to prevent Nigerians from benefiting from lower production costs.
He acknowledged the hardship caused by high fuel prices to households and businesses, promising that the FCCPC would work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant agencies to monitor wholesale and retail prices.
He warned that appropriate action would be taken where evidence of anti-competitive conduct or unfair practices was established.
The intervention comes amid growing public frustration over the continued gap between falling international crude prices and the high cost of petrol in Nigeria.
Despite the expansion of domestic refining capacity, including the Dangote Petroleum Refinery, pump prices remain influenced by crude oil costs, foreign exchange movements, refining expenses and distribution charges.
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