The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers, depot operators and other stakeholders in Nigeria’s downstream oil sector to reflect falling global crude oil prices in pump prices or risk regulatory sanctions.
The Commission said its latest market surveillance revealed that although international crude oil prices have dropped significantly, many consumers are yet to benefit from corresponding reductions in the retail price of Premium Motor Spirit (PMS), commonly known as petrol.
In a statement issued by the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, the Commission stressed that while Nigeria operates a deregulated downstream petroleum market, businesses are still legally required to compete fairly and avoid practices that exploit consumers.
According to the FCCPC, crude oil prices have declined sharply in recent weeks following improved global supply conditions, including easing geopolitical tensions in the Middle East. Despite this development, the Commission observed that reductions in gantry prices and retail pump prices have been minimal compared to the scale of the decline in international oil prices.
Bello clarified that the Commission does not fix or approve petroleum prices. Instead, its mandate under the Federal Competition and Consumer Protection Act is to promote healthy market competition, prevent anti-competitive conduct and protect consumers from unfair, deceptive or exploitative business practices.
He noted that marketers often increase fuel prices quickly whenever crude oil prices rise, making it difficult to justify the slow pace of price reductions when global oil prices fall.
The FCCPC acknowledged that domestic fuel prices are influenced by factors such as foreign exchange fluctuations, logistics, refining costs, financing expenses and distribution costs. However, it maintained that competitive market forces should ensure that consumers receive a fair share of the benefits arising from lower international crude prices.
The Commission warned that any credible evidence of anti-competitive behaviour, consumer exploitation or violations of the Federal Competition and Consumer Protection Act would trigger investigations and appropriate enforcement measures, including sanctions where necessary.
It also urged Nigerians to report suspected cases of price manipulation, misleading pricing or other unfair market practices through the Commission’s official complaint channels to support ongoing efforts to ensure transparency and fairness in the downstream petroleum sector.
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