FCCPC Warns Petrol Marketers Over Unfair Pricing, Threatens Sanctions

The Federal Competition and Consumer Protection Commission has expressed concern that consumers have yet to benefit fully from the recent decline in global crude oil prices, warning that it will sanction businesses found to be exploiting buyers in the downstream petroleum sector.

Daily Post reported that the warning was issued on Sunday by the Director of Corporate Affairs of the Commission, Ondaje Ijagwu. According to the Commission, petrol is still being sold at an average of N1,200 nationwide, with some local refiners fixing gantry prices between N1,025 and N1,075.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the commission was concerned by what appeared to be a one-sided response to changes in crude oil prices.

Bello said the commission does not regulate or approve petroleum prices in a deregulated downstream market. Its 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.

Premium Times reported that crude oil prices have fallen to approximately $73 per barrel, following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, down from a peak of $120 per barrel in April.

According to the FCCPC, the earlier spike in crude prices prompted local refiners and marketers to increase petrol prices nationwide to between N1,350 and N1,500 per litre, while diesel sold for approximately N2,000 per litre during hostilities between April and May.

Bello warned that market liberalisation does not diminish the obligation of businesses to compete fairly or the right of consumers to fair treatment.

Punch also reported the FCCPC’s concerns over slow fuel price cuts.

Sources: Daily Post; Premium Times; Punch