The Federal Competition and Consumer Protection Commission (FCCPC) has expressed serious concerns about possible consumer exploitation in Nigeria’s downstream petroleum sector, noting that fuel prices have seen only marginal reductions despite a sharp drop in global crude oil prices.
In a statement issued on Sunday by its Director of Corporate Affairs, Ondaje Ijagwu, the commission said ongoing market surveillance revealed that local refiners, depot operators, marketers, and filling station owners implemented only token price cuts that were not commensurate with the steep decline in international crude prices.
The FCCPC observed that while consumers are yet to fully benefit from the easing of global oil prices, operators in the sector have been slow to pass on the gains.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, highlighted what he described as a one-sided response by operators.
“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,” Bello said. “Competitive markets must work fairly in both directions.”
Bello clarified that the commission does not regulate or approve petroleum prices in the deregulated market, but is mandated under the Federal Competition and Consumer Protection Act, 2018, to promote competitive markets and protect consumers from unfair and exploitative practices.
The concerns come after a significant reversal in global oil prices following a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz. Crude oil prices, which had surged to around $120 per barrel in April amid Middle East tensions, have now fallen to about $73 per barrel — levels last seen in February.
In response to the earlier surge, petrol prices in Nigeria rose sharply to between N1,350 and N1,500 per litre in many parts of the country, while diesel reached about N2,000 per litre. In February, petrol sold for between N800 and N900 per litre. Despite the recent drop in crude prices, petrol is still averaging around N1,200 per litre nationwide, with some local refiners’ gantry prices ranging from N1,025 to N1,075 per litre.
The FCCPC acknowledged that domestic fuel prices are influenced by multiple factors, including foreign exchange fluctuations, logistics, financing, refining, and distribution costs. However, it maintained that competitive market forces should have triggered more substantial reductions.
“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment,” Bello stated. “Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Act, the Commission will investigate and take appropriate enforcement actions.
The commission urged Nigerians to report suspected cases of anti-competitive conduct, price manipulation, and unfair practices through its official channels.
The FCCPC’s intervention is expected to intensify public debate over the effectiveness of Nigeria’s deregulated petroleum market, with many consumers questioning why reductions in international crude prices have not translated into proportionate relief at the pumps. Since the removal of fuel subsidies, fuel prices have become closely tied to global crude movements and exchange rates, but consumer groups have often accused marketers of quickly implementing upward adjustments while delaying downward reviews.
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