Petrol Refiners, Stations Face Sanctions as FCCPC Monitors Prices Amid Crude Oil Decline

By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) has warned petrol refiners and marketers of possible sanctions over anti-competitive practices and unjustified pricing as international crude oil prices decline.

The commission said it was monitoring the sustained drop in global crude oil prices to ensure that the reduction translates into lower petrol prices for Nigerian consumers.

The Executive Vice Chairman and Chief Executive Officer of FCCPC, Mr Tunji Bello, gave the warning on Tuesday following public enquiries over the continued high cost of petrol despite the decline in crude oil prices.

According to a statement by the agency’s Director of Corporate Affairs, Mr Ondaje Ijagwu, Brent crude futures have fallen from a peak of $115 per barrel in September to below $90 this week.

Despite the decline, petrol currently sells for an average of between N1,405 and N1,420 per litre in Abuja, while prices in Lagos range between N1,325 and N1,370 per litre.

The commission recalled that on February 27, a day before the outbreak of the war involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel, while 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 international crude oil prices following the outbreak of the US-Iran conflict in the Middle East and the subsequent blockade of the Strait of Hormuz, a major route for global oil shipments.

However, Mr Bello said a sustained decline in crude oil prices should be reflected in the cost of refined petroleum products, warning that refiners and marketers had no justification for maintaining elevated prices if their operating costs had reduced.

“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 boss acknowledged the financial pressure Nigerians had faced due to high fuel prices, assuring that the Commission would continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to monitor wholesale and retail prices.

He warned that the Commission would take appropriate action within its statutory mandate where evidence of anti-competitive conduct or unfair practices prevented consumers from benefiting from lower costs.

“Where there is evidence of anti-competitive conduct or unfair practices that prevent consumers from benefiting from lower costs, we will take appropriate action within our mandate,” Mr Bello said.