FCCPC Threatens Sanctions Over Slow Nigeria Fuel Price Drops

The Federal Competition and Consumer Protection Commission (FCCPC) is investigating Nigeria's downstream petroleum sector for potential consumer exploitation. Market surveillance by the commission revealed that while global crude oil prices dropped from a peak of $120 per barrel in April to approximately $73 per barrel following a U.S.-Iran ceasefire and the reopening of the Strait of Hormuz, domestic pump prices have remained high. Petrol prices currently average around N1,200 per litre, despite having been as low as N800 to N900 in February.

Executive Vice Chairman Tunji Bello stated that although the commission does not regulate prices in a deregulated market, it will take enforcement action against operators who undermine competition or employ deceptive business practices. The FCCPC noted a disparity where marketers swiftly hike prices during crude surges but implement only marginal reductions when costs fall. This is despite local refiners lowering ex-depot prices to between N1,025 and N1,075 per litre.

In response, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, argued that marketers are reducing prices in batches as refiners lower their rates. Meanwhile, Finance Minister Taiwo Oyedele indicated the government is engaging regulators and operators to balance commercial viability with consumer protection. Oyedele attributed the slow price decline to existing inventory and noted that President Bola Tinubu's suspension of certain taxes and duties has helped keep Nigerian fuel costs lower than in neighboring countries.