Nigeria TV Info 

FCCPC Questions Slow Fuel Price Cuts Despite Crude Oil Price Crash

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the slow reduction in petrol prices across Nigeria despite the sharp decline in global crude oil prices, warning that consumers may not be receiving the full benefits of the market downturn.

According to the Commission, ongoing surveillance of the downstream petroleum sector revealed that local refiners, depot operators, marketers and filling station owners have only made marginal reductions in fuel prices, even as international crude oil prices dropped significantly in recent weeks. FCCPC described the situation as potentially unfair to consumers.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, stressed that although the Commission does not regulate fuel prices in Nigeria's deregulated downstream petroleum market, it has a legal responsibility to ensure fair competition and protect consumers from exploitative business practices. He noted that marketers often raise pump prices quickly whenever crude oil prices increase, but are much slower to reduce prices when crude oil becomes cheaper.

The Commission explained that global crude oil prices have fallen from around $120 per barrel during heightened geopolitical tensions in the Middle East to approximately $73 per barrel following improved global supply conditions and the reopening of major oil shipping routes. Despite this decline, petrol is still selling at an average of about ₦1,200 per litre in many parts of Nigeria, compared to ₦800–₦900 per litre before the earlier surge in crude prices.

While acknowledging that domestic fuel pricing is influenced by factors such as foreign exchange rates, refining costs, transportation, financing and distribution expenses, the FCCPC maintained that competitive market forces should ordinarily result in more substantial reductions at the pump when international prices fall.

The Commission warned that it would investigate and take enforcement action against any company found engaging in anti-competitive conduct, price manipulation or exploitative practices in violation of the Federal Competition and Consumer Protection Act. It also encouraged Nigerians to report suspected unfair pricing and other anti-consumer practices through its official complaint channels.