The Federal Competition and Consumer Protection Commission (FCCPC) has raised the alarm over the sluggish response of local fuel retailers to the recent crash in global crude oil prices, warning that profiteers risk severe sanctions.
Findings from the Commission’s ongoing surveillance of the downstream petroleum market reveal that despite crude prices falling sharply, gantry and pump prices across Nigeria have seen only marginal reductions—a trend the regulator deems exploitative.
“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is taking forever for consumers to benefit significantly when crude prices fall,” said FCCPC Chief Executive Tunji Bello. He clarified that while the Commission does not regulate prices in the deregulated sector, it is mandated under the Federal Competition and Consumer Protection Act, 2018, to prevent anti-competitive conduct and protect consumers from unfair business practices.
Crude oil prices have retreated to $73 per barrel, following a recent ceasefire between the U.S. and Iran and the reopening of the strategic Strait of Hormuz. This represents a steep drop from the $120 peak recorded in April. The earlier geopolitical tensions had triggered a rapid surge in domestic fuel costs, with petrol selling between N1,350 and N1,500 and diesel peaking at N2,000. In contrast, prices stood at just N800 to N900 per litre in February.
Today, despite the significant crude decline, the average pump price of Premium Motor Spirit (PMS) remains stubbornly high at N1,200 nationwide, while some local refiners have set their gantry prices between N1,025 and N1,075.
Mr Bello emphasised that competitive markets must operate transparently in both directions, reaffirming the FCCPC’s commitment to holding violators accountable. The Commission has vowed to sanction any entity found to be engaging in exploitative pricing or anti-competitive behaviour.
