FCCPC warns marketers against keeping petrol prices high as oil falls
The Federal Competition and Consumer Protection Commission (FCCPC) has said it is monitoring the decline in international crude oil prices to ensure that the reduction translates into lower petrol prices at filling stations across Nigeria.
The commission’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, gave the assurance on Tuesday amid growing concerns over the continued high cost of petrol despite falling crude oil prices.
Latest market reports indicate that Brent crude futures have declined from a peak of $115 per barrel in September to below $90 this week.
However, petrol prices remain elevated, selling between N1,405 and N1,420 per litre in Abuja, while motorists in Lagos pay between N1,325 and N1,370 per litre.
The FCCPC recalled that on February 27, a day before the outbreak of the conflict involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel.
At the time, petrol sold for between N839 and N925 per litre in Lagos and Abuja.
Petroleum marketers have attributed the increase in fuel prices over the past eight months to volatility in the international oil market following the Middle East conflict and the subsequent blockade of the Strait of Hormuz, a major global oil transit route.
Bello, however, said sustained reductions in crude oil prices should translate into lower operating costs for refiners and petroleum marketers, urging industry players to reflect the savings in their pump prices.
“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.
The FCCPC chief acknowledged the financial pressure high fuel prices had placed on Nigerians, assuring that the commission would sustain its monitoring of developments in the downstream petroleum market.
He said the commission would collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to track movements in wholesale and retail fuel prices.
Bello added that the FCCPC would take appropriate action within its statutory mandate if evidence emerged that anti-competitive practices or unfair market conduct were preventing consumers from benefiting from lower costs.
About The Author
