FCCPC Warns of Consumer Exploitation as Fuel Prices Lag Global Crude Decline

The Federal Competition and Consumer Protection Commission (FCCPC) has flagged that Nigerian fuel prices have not fallen in line with a steep decline in global crude oil prices. Ongoing market surveillance showed only marginal cuts in gantry and retail prices for Premium Motor Spirit (PMS) and diesel. After a recent cease-fire and the reopening of the Strait of Hormuz, Brent crude dropped from $120 to $73 per barrel, yet pump prices still average N1,200 per litre. Nigeria’s downstream sector is deregulated following the removal of fuel subsidies; the FCCPC does not set prices but monitors competition and consumer protection.

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Key figures show Brent crude falling from $120/barrel in April to $73/barrel in June, returning to February levels. Domestic PMS prices rose to N1,350-N1,500/L during the April-May surge, fell to N800-N900/L in February, and now sit around N1,200/L. Gantry prices reported by refiners range from N1,025 to N1,075/L, indicating only modest reductions.

“Consumers Yet To Benefit From Crude Price Drop” — FCCPC Raises Concern Over Possible Fuel Price Exploitation In Downstream Sector

Director of Corporate Affairs Ondaje Ijagwu presented the surveillance findings, stressing that consumers have not yet benefited from lower crude costs. Executive Vice Chairman and CEO Tunji Bello reiterated the commission’s statutory role to promote competition, curb anti-competitive conduct, and shield consumers from unfair practices. He warned that dealers typically raise prices quickly when crude costs rise but delay passing on savings when costs fall. The FCCPC pledged to investigate any credible evidence of exploitative conduct and urged the public to report suspected violations.

FCCPC Questions Fuel Prices, Warns Marketers Over Slow Cuts

• “To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market.” — Tunji Bello, Executive Vice Chairman and CEO, FCCPC

FCCPC Probes Fuel Pricing Amid Consumer Exploitation Concerns

• “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,” — Tunji Bello, Executive Vice Chairman and CEO, FCCPC

FCCPC Probes Fuel Pricing Amid Consumer Exploitation Concerns

• “We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions.” — Tunji Bello, Executive Vice Chairman and CEO, FCCPC

FCCPC Probes Fuel Pricing Amid Consumer Exploitation Concerns

• “Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right 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.” — Tunji Bello, Executive Vice Chairman and CEO, FCCPC

“Consumers Yet To Benefit From Crude Price Drop” — FCCPC Raises Concern Over Possible Fuel Price Exploitation In Downstream Sector

The FCCPC indicated that investigations will lead to sanctions where anti-competitive or exploitative behavior is proven. Consumers are encouraged to continue submitting complaints through the commission’s established channels to facilitate monitoring and enforcement.

FCCPC Threatens Sanctions Over Exploitation By Oil Marketers