The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the slow pace of petrol price reductions in Nigeria despite a significant decline in global crude oil prices, warning that consumers may be facing unfair pricing practices in the downstream petroleum sector.
According to the commission, its ongoing market surveillance indicates that local refiners, depot operators, petroleum marketers and filling station owners have implemented only marginal reductions in fuel prices, despite the sharp fall in international crude oil prices.
The FCCPC said the limited price adjustments are not proportional to the decline in crude oil costs, raising questions about whether consumers are receiving the full benefits of market changes.
In a statement issued on Sunday by the commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC disclosed that a review of prevailing gantry and retail fuel prices revealed only token reductions across the supply chain.
The statement noted that the commission had identified signs of possible consumer exploitation during its surveillance of the downstream petroleum market.
It explained that while crude oil prices had dropped significantly in recent weeks, fuel prices at depots and retail outlets remained relatively high, suggesting that the benefits of lower international oil prices had yet to reach Nigerian consumers.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the commission was particularly concerned about what appeared to be an imbalance in the way marketers respond to movements in crude oil prices.
According to Bello, operators in the downstream petroleum industry are often quick to increase pump prices whenever crude oil prices rise but tend to delay reducing prices when the global market records substantial declines.
He clarified that the FCCPC does not regulate or approve petroleum prices under Nigeria’s deregulated downstream market but is empowered by the Federal Competition and Consumer Protection Act, 2018, to promote fair competition, prevent anti-competitive behaviour and protect consumers from exploitative business practices.
Bello stressed that competitive markets should function fairly in both directions, ensuring that consumers benefit from price declines just as quickly as they bear the burden of price increases.
The FCCPC’s concerns come as international oil prices have retreated sharply following geopolitical developments, including the ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, one of the world’s most important oil shipping routes.
The easing of tensions has contributed to a substantial drop in crude oil prices, reversing earlier gains recorded during the Middle East crisis.
Only days earlier, crude oil prices had fallen to approximately $73 per barrel, their lowest level since the conflict between the United States and Iran escalated in February. At the height of the crisis in April, crude prices had surged to around $120 per barrel amid fears of supply disruptions.
The earlier spike in international oil prices triggered immediate increases in domestic fuel prices across Nigeria. Petrol rose to between ₦1,350 and ₦1,500 per litre in many locations, while diesel climbed to around ₦2,000 per litre.
Before the sharp increase in crude oil prices, petrol had sold for between ₦800 and ₦900 per litre in February.
Despite crude oil returning to about $73 per barrel, the FCCPC observed that petrol continues to sell for an average of about ₦1,200 per litre nationwide. The commission also noted that some local refiners currently maintain gantry prices ranging from ₦1,025 to ₦1,075 per litre.
While acknowledging that several commercial factors influence domestic fuel pricing—including foreign exchange fluctuations, logistics costs, financing expenses, refining costs and distribution charges—the commission maintained that market competition should ordinarily produce more noticeable reductions in pump prices when crude oil prices decline significantly.
Bello warned that market liberalisation does not exempt businesses from the obligation to compete fairly or treat consumers equitably.
He stated that where credible evidence shows conduct capable of undermining competition, manipulating prices or exploiting consumers in violation of the Federal Competition and Consumer Protection Act, the commission would investigate and take appropriate enforcement actions.
The FCCPC also encouraged Nigerians to report suspected cases of price manipulation, anti-competitive conduct and other unfair business practices through its official complaint channels.
The commission’s position is expected to renew debate over the effectiveness of Nigeria’s deregulated petroleum market, as consumers and industry stakeholders continue to question why falling international crude oil prices have not translated into comparable reductions at filling stations.
Since the removal of fuel subsidy and the full deregulation of the downstream petroleum sector, domestic fuel prices have become closely linked to global crude oil prices and foreign exchange movements. However, consumer advocacy groups have repeatedly accused marketers of reacting swiftly to rising costs while delaying price reductions whenever market conditions become more favourable.
The FCCPC said it would continue monitoring pricing activities within the sector as pressure mounts on operators to ensure that the benefits of lower crude oil prices are reflected in pump prices for Nigerian consumers.
