The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers against exploiting Nigerians through unjustified fuel prices, insisting that any reduction in operating costs must be reflected at the pumps or risk regulatory sanctions.
The Commission said it was closely monitoring developments in the downstream petroleum sector following recent fluctuations in global crude oil prices and reiterated that market liberalisation does not permit anti-competitive conduct or unfair pricing practices.
According to the FCCPC, the sharp rise in international crude oil prices during the Gulf hostilities between April and May prompted refiners and marketers to increase pump prices across the country. During the period, Premium Motor Spirit (PMS), commonly known as petrol, sold for between ₦1,350 and ₦1,500 per litre, while diesel prices climbed to as much as ₦2,000 per litre.
The Commission, however, noted that with the easing of global market pressures and improvements in local supply conditions, petrol is now being sold at an average of about ₦1,200 per litre nationwide. It added that some domestic refiners currently offer gantry prices ranging from ₦1,025 to ₦1,075 per litre, creating room for more competitive retail pricing.
Despite these developments, the FCCPC expressed concern that many consumers have yet to benefit fully from the reduction in wholesale prices, stressing that businesses must not retain excessive profit margins at the expense of Nigerians.
The consumer protection agency acknowledged that domestic fuel pricing is influenced by several factors, including refining costs, foreign exchange fluctuations, transportation, logistics, financing and distribution expenses. Nonetheless, it maintained that where operational costs decline, competitive market forces should naturally drive corresponding reductions in pump prices.
Speaking on behalf of the Commission, Mr. Bello said fuel marketers have a legal responsibility to compete fairly while protecting consumers from exploitative practices.
“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment,” he said.
“Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”
The FCCPC stressed that liberalising the downstream petroleum sector was never intended to create an environment where operators could manipulate prices or engage in practices that harm consumers. Instead, it said competition should encourage efficiency, improve service delivery and ultimately result in fairer prices for the public.
Industry observers believe the Commission’s latest intervention signals tighter regulatory oversight of fuel pricing as Nigerians continue to grapple with the high cost of transportation and other essential goods driven by energy prices.
The agency also appealed to Nigerians to remain vigilant and support ongoing market surveillance by reporting suspected cases of price manipulation, collusion among marketers, misleading pricing practices and other anti-competitive behaviour through its established complaint channels.
According to the Commission, consumer participation is essential in ensuring transparency and accountability within the deregulated petroleum market.
The warning comes at a time when many Nigerians expect further reductions in petrol prices following improvements in crude oil prices and increased domestic refining capacity.
Analysts say sustained competition among refiners and marketers, coupled with effective regulatory oversight, will be crucial in ensuring that cost savings are transferred to consumers rather than retained as excessive profits.
The FCCPC reaffirmed its commitment to protecting consumers and promoting fair competition, warning that any marketer found engaging in exploitative pricing or violating the Federal Competition and Consumer Protection Act would face appropriate sanctions.
For millions of Nigerians struggling with rising living costs, the Commission’s message is clear: the benefits of lower fuel costs must reach consumers, and businesses that profiteer at the public’s expense will be held accountable.
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