FCCPC Threatens Probe as Petrol Prices Defy Global Crude Price Decline

By Àkànní Olúwaségún Michael

The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers that it will investigate any evidence of anti-competitive conduct or market manipulation, raising concerns that falling global crude oil prices have not translated into relief at filling stations across Nigeria.

The Commission said evidence from its ongoing monitoring of the downstream petroleum sector suggests that reductions in international crude prices have not produced commensurate price adjustments at the pump, despite the country’s deregulated fuel market.

International crude oil prices have retreated to approximately $73 per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, down from peaks of nearly $120 per barrel recorded earlier in the year amid geopolitical tensions in the Middle East.

The FCCPC recalled that the earlier price spike had driven domestic petroleum costs sharply higher, with petrol selling between ₦1,350 and ₦1,500 per litre and diesel rising to around ₦2,000 per litre. Despite the subsequent moderation in crude prices, petrol continues to retail at an average of about ₦1,200 per litre nationwide, even as some local refiners have reduced gantry prices to between ₦1,025 and ₦1,075 per litre.

The Commission observed a pattern in which petroleum marketers rapidly adjust pump prices upward when crude oil prices rise but are often reluctant to implement equivalent reductions when international prices fall.

Executive Vice Chairman and Chief Executive Officer Tunji Bello said the development raises important questions about market responsiveness and the extent to which consumers are benefiting from favourable global pricing conditions.

“Competitive markets must function fairly in both directions. Consumers should not be denied the benefits of lower crude oil prices when market conditions improve,” Bello said.

While acknowledging that domestic fuel prices are influenced by multiple variables — including refining costs, exchange rate movements, logistics, financing expenses and distribution costs — the Commission argued that competitive market forces should ordinarily produce more noticeable relief for consumers.

Bello stressed that deregulation does not shield businesses from competition laws or consumer protection obligations, warning that the FCCPC would investigate any evidence of excessive pricing or market manipulation.