FCCPC Warns Marketers Against Retaining High Fuel Prices Despite Crude Oil Decline

 

By Stella Odueme 

The Federal Competition and Consumer Protection Commission (FCCPC) has stepped up monitoring of petroleum product prices following the decline in international crude oil prices, insisting that Nigerian consumers must benefit from the reduction.

The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr Tunji Bello, gave the assurance on Tuesday while responding to public concerns over the continued high cost of petrol and diesel across the country.

The Commission disclosed that Brent crude futures, which reached a peak of $115 per barrel in September, had dropped to below $90 per barrel this week.

Despite the decline, petrol prices remain relatively high, selling between ₦1,405 and ₦1,420 per litre in Abuja and between ₦1,325 and ₦1,370 in Lagos.

According to a statement by the Director of Corporate Affairs, Ondaje Ijagwu, FCCPC recalled that before the outbreak of the conflict involving the United States, Israel and Iran on February 28, Brent crude futures closed at $72.48 per barrel on February 27, while petrol prices ranged between ₦839 and ₦925 per litre in Lagos and Abuja.

It explained that petroleum marketers had linked the increase in fuel prices over the past eight months to fluctuations in crude oil prices arising from the Middle East conflict and the reported blockade of the Strait of Hormuz, through which at least 25 per cent of global oil traffic passes.

Bello maintained that a sustained decline in crude oil prices should translate into reduced wholesale costs for petroleum products, stressing that the resulting savings must be passed on to consumers promptly.

He said the Commission understood the economic pressure high fuel prices had placed on Nigerians and would continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant agencies to monitor developments in the petroleum market.

The FCCPC chief executive added that the Commission would intervene within its statutory mandate where evidence of anti-competitive behaviour or unfair business practices was established.

He stressed that such practices would not be allowed to prevent consumers from enjoying the benefits of declining production and supply costs.