The Federal Competition and Consumer Protection Commission (FCCPC) has moved to ensure a reduction in petrol prices across Nigeria following the decline in international crude oil prices, warning that marketers and refiners must pass the benefits of lower production costs on to consumers.
The commission said it was closely monitoring developments in the global oil market to ensure that the recent drop in crude prices translates into cheaper petrol and diesel at filling stations across the country.
The FCCPC disclosed this in a statement issued on Tuesday by its spokesperson, Ondaje Ijagwu, noting that Brent crude futures had fallen from a peak of $115 per barrel in September to below $90 this week.
“Latest reports indicate that Brent futures have fallen from the peak of $115 in September to below $90 this week in the international market,” the statement reads.
Despite the decline in crude prices, the commission observed that petrol remained relatively expensive, selling between ₦1,405 and ₦1,420 per litre in Abuja and between ₦1,325 and ₦1,370 in Lagos.
It recalled that on February 27, before the reported conflict involving the United States, Israel and Iran began, Brent crude futures closed at $72.48 per barrel, while petrol sold for between ₦839 and ₦925 per litre in Lagos and Abuja.
“On 27 February, the day before the war involving the United States, Israel and Iran began, Brent crude futures closed at US$72.48 per barrel. Around that time, petrol sold for between ₦839 and ₦925 per litre at filling stations in Lagos and Abuja.”
According to the commission, petroleum marketers have repeatedly blamed the surge in fuel prices over the past eight months on volatility in international crude oil prices following the outbreak of the US-Iran conflict in the Middle East and the resulting blockade of the Strait of Hormuz.
Reacting to the development, FCCPC Chief Executive Officer, Tunji Bello, said the sustained decline in crude oil prices should translate into lower wholesale costs, leaving refiners and marketers with no justification for maintaining relatively high petrol and diesel prices.
“We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” Bello said.
Acknowledging the hardship caused by high fuel prices, Bello assured Nigerians that the commission would work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor wholesale and retail prices.
“We are aware of the difficulties high pump prices have caused Nigerians for some time now,” Bello said.
“Let me reassure that the Commission will continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to track wholesale and retail petrol prices.”
The FCCPC chief executive warned that the commission would not hesitate to intervene where evidence shows that anti-competitive conduct or unfair practices are preventing consumers from benefiting from lower costs.
“we will take appropriate action within our mandate,” he added.
