FCCPC tells refiners and marketers to cut petrol prices as crude oil falls

The Federal Competition and Consumer Protection Commission (FCCPC) has asked petroleum refiners and marketers to pass the benefit of falling crude oil prices on to consumers, and says it is watching pump prices closely.

Its Executive Vice Chairman and Chief Executive, Tunji Bello, said on Tuesday that Brent crude, which peaked at about $115 a barrel in September, has fallen to below $90 this week. Leadership put the decline at 21.7 per cent.

Despite that fall, petrol still sells for between N1,405 and N1,420 per litre in Abuja and between N1,325 and N1,370 in Lagos, according to figures cited in the reports. On February 27, the day before the conflict involving the United States, Israel and Iran began, Brent closed at $72.48 a barrel and petrol sold for between N839 and N925 per litre in Lagos and Abuja.

Petroleum marketers have blamed the rise in domestic fuel prices over the past eight months on volatility in international crude prices after the conflict began, and on the blockade of the Strait of Hormuz, a route that carries at least 25 per cent of global oil traffic, according to the reports.

"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," Bello said. "We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay."

He acknowledged the hardship Nigerians have faced from persistently high fuel prices. The commission said it is monitoring crude price movements and their effect on domestic prices, and will take appropriate action within its mandate where there is evidence of anti-competitive conduct or unfair practices that stop consumers benefiting from lower costs.

The commission has not accused any refiner or marketer of wrongdoing.

Bello said the commission will keep working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other government agencies to monitor wholesale and retail petroleum prices. Leadership noted that the intervention puts fresh attention on how quickly lower global crude prices are passed along the chain, from refiners and importers to wholesale distributors and filling stations.

ThisDay reported that the commission is increasingly concerned that consumers may not see matching relief if refiners and marketers do not adjust their pricing, at a time when households and businesses are under pressure from the cost of energy.