FCCPC monitors petrol prices, says no justification for high pump prices as crude falls
By Shola Johnson
The Federal Competition and Consumer Protection Commission (FCCPC), has said it is monitoring developments in the international crude oil market to ensure that declining prices translate into lower petrol and diesel costs for Nigerian consumers.
The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr. Tunji Bello, gave the assurance following public enquiries over the continued high cost of petroleum products despite the recent decline in global crude oil prices.
Latest market reports indicate that Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 this week, raising expectations of possible relief for consumers.
However, petrol currently sells at between ₦1,405 and ₦1,420 per litre in Abuja, while prices in Lagos range between ₦1,325 and ₦1,370 per litre.
The Commission noted that on February 27, before the outbreak of the conflict involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel, while petrol sold for between ₦839 and ₦925 per litre in Lagos and Abuja.
Petroleum marketers have attributed the surge in fuel prices over the past eight months to volatility in international crude oil prices following the outbreak of the Middle East conflict and the subsequent blockade of the Strait of Hormuz, a major global oil transportation route.
Bello said sustained declines in crude oil prices should result in corresponding reductions in the cost of refined petroleum products, warning that refiners and marketers should not continue to maintain relatively high prices if their input costs decline.
“If the decline in crude prices is sustained, there is no justification for refiners and marketers to continue to keep petrol and diesel prices relatively high. We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” he said.
He acknowledged the economic difficulties caused by high petrol prices and assured Nigerians that the Commission would continue to monitor developments in the downstream petroleum market.
According to him, the FCCPC will work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to track wholesale and retail petroleum prices.
Bello added that the Commission would take appropriate action within its statutory mandate where evidence of anti-competitive conduct or unfair market practices prevents consumers from benefiting from declining costs.
