The Federal Competition and Consumer Protection Commission, FCCPC, has warned petroleum refiners and marketers against retaining high petrol and diesel prices despite the recent decline in international crude oil prices.
The Commission said it was closely monitoring developments in the global oil market to ensure that the decline in crude prices translates into lower fuel prices at filling stations across the country.
It insisted that consumers must benefit from the reduction in production costs.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, gave the assurance on Tuesday in response to public concerns over the continued high cost of petroleum products, according to a statement issued by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu.
Latest market reports indicate that Brent crude futures, which reportedly peaked at $115 per barrel in September, have fallen to below $90 this week, raising expectations of a possible reduction in domestic petrol and diesel prices.
However, petrol prices remain relatively high, averaging between N1,405 and N1,420 per litre in Abuja, while consumers in Lagos pay between N1,325 and N1,370 per litre.
The Commission noted that on February 27, a day before the outbreak of the conflict involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel, while petrol sold for between N839 and N925 per litre in Lagos and Abuja.
Petroleum marketers have frequently attributed the increase in domestic fuel prices over the past eight months to volatility in international crude oil prices following the outbreak of the Middle East conflict and the subsequent blockade of the Strait of Hormuz, a critical global oil transportation route responsible for at least 25 per cent of global oil traffic.
Bello, however, maintained that a sustained decline in international crude prices should compel refiners and marketers to review their prices and pass the benefits of reduced costs to consumers.
“If the decline in crude prices is sustained, there is no justification for refiners and marketers to continue to keep petrol and diesel prices relatively high.
“We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” he said.
The FCCPC chief acknowledged the economic difficulties Nigerians have faced as a result of persistently high fuel prices, assuring consumers that the Commission would intensify its monitoring of the petroleum market to prevent unfair pricing practices.
He said the Commission would collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to monitor wholesale and retail fuel prices.
According to him, the FCCPC would intervene where evidence of anti-competitive conduct or unfair market practices suggests that refiners and marketers are preventing consumers from benefiting from declining production costs.
“Where there is evidence of anti-competitive conduct or unfair practices that prevent consumers from benefiting from lower costs, we will take appropriate action within our mandate,” Bello said.
