The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over what it described as the failure of fuel marketers, depot operators and retailers to reduce petrol prices in line with the recent decline in global crude oil prices, warning that exploitative practices will attract sanctions.

In a statement issued on Sunday by the Director of Corporate Affairs, Ondaje Ijagwu, the commission said findings from its ongoing surveillance of the downstream petroleum sector suggested that reductions in gantry prices by local refiners, marketers, depot operators and retail outlet operators were not commensurate with the steep fall in crude oil prices.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said although the commission does not regulate or approve petroleum prices in Nigeria’s deregulated downstream market, it has the statutory responsibility to promote competition and protect consumers from unfair and exploitative business practices.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” Bello said.

He noted that while fuel dealers often increase pump prices quickly whenever crude oil prices rise, consumers have not enjoyed corresponding benefits from the recent decline in global crude prices.

“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,” he added.

According to the commission, global crude oil prices have fallen to about $73 per barrel, down sharply from a peak of $120 per barrel in April following the reopening of the Strait of Hormuz after a ceasefire agreement between the United States and Iran. It said crude prices have now returned to February levels.

The FCCPC recalled that the earlier surge in crude prices pushed petrol pump prices to between ₦1,350 and ₦1,500 per litre, while diesel sold for about ₦2,000 per litre during heightened hostilities in the Gulf between April and May.

It noted that although some local refiners have reduced gantry prices to between ₦1,025 and ₦1,075 per litre, PMS is still sold at an average of ₦1,200 per litre nationwide, despite selling between ₦800 and ₦900 per litre in February.

While acknowledging that domestic fuel prices are influenced by factors such as refining costs, foreign exchange fluctuations, logistics, financing and distribution expenses, the commission said competitive market forces should have ensured faster transmission of cost savings to consumers.

Bello warned that market liberalisation does not absolve businesses of their obligation to compete fairly, stressing that the commission would investigate and sanction any conduct that undermines competition or exploits consumers in violation of the Federal Competition and Consumer Protection Act.

He also urged consumers to continue reporting suspected anti-competitive conduct, misleading pricing practices and other forms of unfair market behaviour through the commission’s established complaint channels.