The Federal Competition and Consumer Protection Commission (FCCPC) warns petrol marketers against profiteering, saying current petrol pump prices do not reflect recent declines in global crude oil costs. In a statement issued on Sunday, the commission says its ongoing surveillance of Nigeria’s downstream petroleum market shows “token reductions” at the gantry and retail levels. It notes that after a ceasefire agreement between the United States and Iran and the reopening of the Straits of Hormuz, global crude prices fall to about $73 per barrel from a peak near $120 in April, returning to roughly February levels.
The FCCPC says local refiners, marketers, depot operators and retail outlet operators respond more quickly when crude prices rise than when they fall. It cites periods earlier in the conflict when pump petrol prices increased rapidly, and says petrol (PMS) is still sold around an average of N1,200 in many places despite lower global crude. The commission acknowledges that domestic prices are affected by multiple factors including refining costs, foreign exchange, logistics, financing and distribution expenses, but it expects competitive dynamics to pass cost savings to consumers.
FCCPC says it will investigate and sanction firms found exploiting consumers or engaging in unfair, deceptive or exploitative practices.
