LAGOS – The Federal Competition and Consumer Protection Commission (FCCPC) warned downstream petroleum operators on Sunday against exploiting consumers by delaying local pump price reductions despite a 40 percent crash in global crude oil costs.
Ongoing surveillance shows local refiners, depot operators, and retailers are keeping fuel prices artificially high, failing to reflect global market changes after a recent U.S.-Iran ceasefire reopened the strategic Strait of Hormuz.
Global Brent crude benchmark prices hovered near $72.29 per barrel on Monday, while West Texas Intermediate (WTI) trades at $70; dropping sharply from a peak of $120 in April, yet domestic petrol retail prices lag significantly behind this major downward international trend.
During the global oil spike, domestic petrol prices rapidly jumped from February levels of N800 to between N1,350 and N1,500 per litre, but currently remain high, averaging N1,200 per litre nationwide.
The commission noted local refiners have already reduced gantry prices to between N1,025 and N1,075 per litre, meaning retailers are deliberately squeezing consumer margins rather than passing on the operational savings.
As Africa’s largest single-train facility, the mega Dangote Refinery recently slashed its wholesale petrol gantry price by N50 to N1,125 per litre, lowering the baseline domestic supply cost for local downstream marketers.
“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.” Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said in a statement.
The consumer protection agency declared that any business found engaging in anti-competitive behavior, coordinated price-fixing, or artificial exploitation of Nigerian consumers will face severe legal sanctions under the existing 2018 competition law.
Simultaneously, data from the Major Energies Marketers Association of Nigeria reveals that the independent spot import landing cost for petrol has dropped sharply to N983.92 per litre, underscoring significant downstream margins.
The slow pace of local price adjustment directly impacts Nigeria’s macroeconomic landscape, where headline inflation rose to 15.93 percent in May, heavily driven by lingering high transport and domestic energy distribution costs.
