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.
In its statement, FCCPC stated that 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.
Reacting, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello recalled that following a ceasefire accord between the U.S and Iran two weeks ago and the reopening of the Straits of Hormuz, crude prices have fallen to $73, a sharp drop from the peak of $120 per barrel in April.
He noted: “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 stressed that across the global market, crude prices have since returned to the February levels.
He added that the earlier spike in crude prices saw local refiners and marketers raising pump prices swiftly across the country, with petrol price climbing to between N1,350 to N1,500 and diesel selling N2,000 as hostilities intensified in the gulf between April and May.
In February, common PMS (petrol) averaged between N800 and N900.
Across the country today, PMS is still sold at average of N1,200 while some local refiners fixed between N1,025 and N1,075 as their gantry prices.