The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern that consumers have yet to benefit fully from the recent decline in global crude oil prices, warning that it will sanction businesses found to be exploiting buyers in the downstream petroleum sector.

The commission states that findings from its ongoing surveillance of the downstream petroleum market show that price reductions by local refiners, marketers, depot operators, and retail outlets have not been commensurate with the sharp drop in global crude oil prices.

Tunji Bello, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, disclosed this in a statement issued on Sunday. Mr Bello clarified that while the commission does not regulate or approve petroleum prices in Nigeria’s deregulated downstream market, it is mandated under the Federal Competition and Consumer Protection Act (FCCPA) 2018 to promote competition, prevent anti-competitive conduct, and protect consumers from unfair, deceptive, and exploitative business practices.

“To be clear, the commission does not regulate or approve petroleum prices in a deregulated downstream market,” he stated. “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.”

Mr Bello noted that the commission is concerned that while marketers often increase pump prices immediately in response to rising crude oil prices, there is a significant delay in consumers benefiting when prices decline. “We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it takes so long for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions,” Mr Bello added.

According to the commission, crude oil prices have fallen to approximately $73 per barrel, following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz—down from a peak of $120 per barrel in April. It added that global crude prices have since returned to February levels.

The FCCPC noted that the earlier spike in crude prices prompted local refiners and marketers to increase petrol prices nationwide to between ₦1,350 and ₦1,500 per litre, while diesel sold for approximately ₦2,000 per litre during hostilities between April and May.

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It reported that petrol sold for between ₦800 and ₦900 per litre in February but currently averages about ₦1,200 per litre nationwide, although some local refiners have reduced their ex-depot prices to between ₦1,025 and ₦1,075 per litre.

While acknowledging that domestic fuel prices are influenced by factors such as refining costs, foreign exchange movements, logistics, financing, and distribution expenses, the commission stated that competitive market dynamics should have enabled consumers to benefit more quickly from the decline in global crude prices.

Mr Bello warned that market liberalisation does not diminish the obligation of businesses to compete fairly or the right of consumers 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,” he noted.

He urged consumers to continue reporting suspected anti-competitive conduct, misleading pricing practices, and other forms of unfair market behaviour via the commission’s established complaint channels.