The Federal Competition and Consumer Protection Commission (FCCPC) has warned refiners, fuel importers, depot operators, marketers and filling station owners against taking advantage of consumers following the recent drop in global crude oil prices.
The commission said its ongoing monitoring of the downstream petroleum sector showed that gantry and retail fuel prices have not fallen significantly, despite the sharp decline in international crude oil prices.
In a statement issued on Sunday, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, stressed that although the commission does not regulate fuel prices in Nigeria’s deregulated market, it has a responsibility to ensure consumers are protected from unfair and exploitative business practices.
“We are concerned that while dealers often increase pump prices almost immediately whenever crude oil prices rise, consumers are not enjoying the same speed of price reductions now that crude prices have fallen. Competitive markets should work fairly in both directions,” Bello said.
The warning comes as fresh data released by the Major Energies Marketers Association of Nigeria (MEMAN) showed that the landing cost of imported petrol has dropped to ₦983.92 per litre, which is now lower than Dangote Refinery’s gantry price of ₦1,125 per litre.
Despite the lower import cost, petrol is still selling for around ₦1,200 per litre in many parts of the country, prompting concerns from consumer groups that the reductions in global oil prices have not been fully reflected at filling stations.
The FCCPC acknowledged that several factors influence domestic fuel prices, including foreign exchange rates, refining costs, transportation, financing, insurance, logistics and distribution expenses. However, the commission insisted that consumers should benefit from declining costs within a reasonable period.
Bello warned that the FCCPC would not hesitate to investigate and sanction any company found engaging in anti-competitive practices or exploiting consumers.
He also encouraged Nigerians to report cases of unfair pricing, misleading business practices and other anti-consumer conduct through the commission’s official complaint channels.
Meanwhile, industry stakeholders argued that commercial realities are delaying immediate reductions in pump prices.
The Executive Secretary of MEMAN, Clement Isong, explained that many marketers purchased products when international prices were higher and would incur significant losses if they reduced prices too quickly.
Similarly, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said retailers were gradually adjusting prices but needed to clear existing inventories before making larger reductions.
The Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko, also pointed to exchange rate fluctuations as a major factor affecting local fuel prices, noting that the petroleum market remains heavily dependent on the value of the naira against the dollar.
Despite the slow pace of reductions, some marketers have already adjusted their prices.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) recently reduced its pump price twice within one week, cutting a cumulative ₦125 per litre, while Dangote Petroleum Refinery lowered its gantry price from ₦1,175 to ₦1,125 per litre following the easing of tensions in the Middle East.
According to MEMAN, although the current spot import parity price is below Dangote Refinery’s price, the 30-day average import parity price remains slightly higher, suggesting that local refining still holds a competitive advantage over a longer period.
The association also noted that Nigeria currently has the lowest petrol prices in West Africa, with average pump prices standing at about ₦1,208 per litre.
