..Warns against consumer exploitation in fuel market
The Federal Competition and Consumer Protection Commission (FCCPC) has raised concern over its surveillance of the downstream petroleum market, saying consumers may be facing undue exploitation as fuel prices remain high despite falling crude oil costs.
In a statement on Sunday by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission said a review of gantry prices from local refiners, marketers, depot operators and retail outlets showed only slight reductions, which it said do not match the sharp drop in global crude prices.
FCCPC Executive Vice Chairman and CEO, Tunji Bello, in the statement, said the Commission does not regulate petroleum prices in Nigeria’s deregulated downstream market, but is mandated to promote competition and protect consumers from unfair practices.
He said dealers quickly raise pump prices when crude rises, but consumers have not seen similar relief as prices fall.
According to the Commission, crude oil has dropped to about $73 per barrel after the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, down from about $120 in April.
The earlier surge pushed petrol prices to between N1,350 and N1,500 per litre and diesel to about N2,000 per litre. Although some refiners have cut gantry prices to between N1,025 and N1,075 per litre, PMS still sells at about N1,200 per litre nationwide.
The FCCPC said other factors such as refining costs, forex, logistics and distribution affect prices, but current market conditions should have delivered bigger reductions.
Bello said the Commission will investigate and act where there is evidence of anti-competitive conduct or consumer exploitation, and urged consumers to keep reporting unfair market practices.
