‘Nigerians not benefiting from drop in crude price’ – FCCPC warns petrol marketers

The Federal Competition and Consumer Protection Commission, FCCPC, has warned petrol marketers against unfair petrol pricing.

In a statement issued on Sunday by the Director of Corporate Affairs of the Commission, Ondaje Ijagwu, a review of prevailing gantry and retail prices suggested that consumers were yet to fully benefit from the easing in global oil prices

The FCCPC noted that the earlier spike in crude oil prices prompted local refiners and marketers to swiftly raise pump prices across the country.

DAILY POST recalls that petrol price rose to between ₦lN1,350 and N1,500 per litre, while diesel sold for as high as N2,000 as hostilities intensified in the Gulf between April and May.

According to the Commission, petrol is still being sold at an average of N1,200 nationwide, with some local refiners fixing gantry prices between N1,025 and N1,075.

“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 said.

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 to changes in crude oil prices.

According to him, operators in the downstream sector often move swiftly to raise pump prices whenever crude oil prices increase but are reluctant to pass on the benefits to consumers when prices fall.

Bello said, “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.”

‘Nigerians not benefiting from drop in crude price’ – FCCPC warns petrol marketers