FCCPC warns petrol marketers against unfair pricing, says consumers not benefiting from lower crude oil prices

The Federal Competition and Consumer Protection Commission, FCCPC, has warned petrol marketers against unfair pricing, saying consumers have yet to fully benefit from the recent decline in global crude oil prices.

In a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said its review of prevailing gantry and retail petrol prices indicated that reductions at the pumps were not commensurate with the sharp drop in international crude oil prices.

The Commission noted that local refiners and marketers had swiftly increased pump prices when crude oil prices surged earlier this year.

InfoStride News recalls that petrol prices rose to between N1,350 and N1,500 per litre, while diesel sold for as much as N2,000 per litre as hostilities in the Gulf escalated between April and May.

According to the FCCPC, petrol is currently sold at an average price of N1,200 per litre nationwide, while some local refiners have fixed gantry prices between N1,025 and N1,075 per litre.

“The Federal Competition and Consumer Protection Commission, FCCPC, has expressed concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers.

“A review of the gantry prices of local refiners, marketers, depot operators and retail outlet operators revealed token reductions in prices that are not commensurate with the steep fall in crude prices in the global market,” the statement read.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the Commission was concerned by what appeared to be a one-sided response by operators in the downstream petroleum sector to fluctuations in crude oil prices.

According to Bello, marketers often respond swiftly by increasing pump prices whenever crude oil prices rise but are reluctant to pass on the benefits to consumers when prices decline.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices.

“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. Competitive markets must work fairly in both directions,” Bello said.