The Federal Competition and Consumer Protection Commission (FCCPC) has stated that there is no justification for the relatively high prices of petrol and diesel in Nigeria, given the continued decline in crude oil prices on the international market.
The Commission made its position known in a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, on Tuesday. The statement follows weeks of concern raised by the Commission over what it described as the slow reduction in petrol prices by refiners, marketers, depot operators and retailers, despite the sharp fall in global crude oil prices.
Mr Tunji Bello, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, said the Commission is closely monitoring the continued decline in crude oil prices internationally to ensure that the gains are reflected in what Nigerians pay at filling stations.
According to the Commission, the latest reports indicate that Brent crude futures have fallen from a peak of $115 in September to below $90 this week. Mr Bello recalled that on February 27, the day before the war involving the United States, Israel and Iran began, Brent crude futures closed at $72.48 per barrel. Around that time, petrol sold for between N839 and N925 per litre at filling stations in Lagos and Abuja.
The FCCPC CEO acknowledged that petroleum product marketers often attribute the spike in prices over the last eight months to volatility in crude oil prices following the outbreak of the US-Iran conflict in the Middle East. That conflict resulted in the blockade of the Strait of Hormuz, a major gateway for at least 25 per cent of global oil traffic.
Mr Bello stated that the Commission is aware of the difficulties that high pump prices have caused Nigerians over time. He maintained that where there is evidence of anti-competitive conduct or unfair practices preventing consumers from benefiting from lower costs, the Commission will take appropriate action within its mandate and powers.
Nairametrics reported that petrol marketers in the country are projecting a drop in fuel prices to the extent that vehicle owners who had converted to CNG might be forced to switch back to petrol. Many Nigerians are expecting prices to return to these levels following developments in the global oil market.
