ABUJA — Nigeria’s competition and consumer watchdog has warned fuel marketers and local refiners against exploiting citizens, questioning why pump prices remain high despite a dramatic crash in global crude oil prices.
The Federal Competition and Consumer Protection Commission (FCCPC) stated on Sunday that an ongoing market surveillance operation revealed only “token reductions” at filling stations and distribution depots. The agency argued these minor price cuts are completely disproportionate to the steep decline in international oil markets.
Global crude prices, which spiked to around $120 a barrel in April due to geopolitical tensions in the Middle East, plummeted to roughly $73 a barrel this week following a US-Iran ceasefire agreement and the reopening of the strategic Strait of Hormuz.
‘One-sided responses’
While local fuel prices surged almost immediately during the oil boom—pushing petrol up to between ₦1,350 and ₦1,500 per litre—retailers have been slow to pass on savings to consumers now that the market has eased. Petrol currently averages about ₦1,200 per litre across the country, while local refinery gate prices sit between ₦1,025 and ₦1,075.
“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,” said Tunji Bello, the Executive Vice Chairman of the FCCPC. “Competitive markets must work fairly in both directions.”
Mr Bello clarified that while the commission does not directly set or regulate fuel prices in Nigeria’s newly deregulated downstream energy sector, it holds a statutory mandate to prevent anti-competitive behaviour, price-fixing, and unfair business practices.
The cost of deregulation
The pricing dispute highlights growing public frustration over the total deregulation of Nigeria’s petroleum sector following the removal of state fuel subsidies.
Under the current liberalised system, domestic pump prices are tied directly to international crude fluctuations and the value of the Nigerian Naira. However, consumer advocacy groups have repeatedly accused oil marketers of moving at asymmetric speeds—raising prices instantly during crises but delaying relief when market conditions improve.
The FCCPC acknowledged that local fuel pricing is highly complex and heavily influenced by severe foreign exchange volatility, landing costs, distribution bottlenecks, and refining margins. Nonetheless, the regulator insisted that genuine market forces should have triggered a much more substantial drop at the pumps by now.
The watchdog warned that it is stepping up regulatory scrutiny across all supply chains and will launch full enforcement actions against any operators found to be manipulating the market or colluding to keep prices artificially high.
Add Comment