Crude Oil Price Drop: FCCPC monitors petrol prices

The Federal Competition and Consumer Protection Commission (FCCPC) says it is monitoring the decline in international crude oil prices to ensure that the reduction is reflected in petrol prices at filling stations across Nigeria. The Executive Vice Chairman and Chief Executive Officer of the commission, Tunji Bello, gave the assurance on Tuesday following public enquiries about the impact of falling crude prices on domestic fuel costs.

Latest market reports indicate that Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 this week. However, petrol currently sells for between N1,405 and N1,420 per litre in Abuja, while prices in Lagos range from N1,325 to N1,370 per litre. The commission recalled that on February 27, a day before the outbreak of the conflict involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel.

At the time, petrol sold for between N839 and N925 per litre at filling stations in Lagos and Abuja. Petroleum marketers have attributed the increase in fuel prices over the past eight months to volatility in international crude oil prices following the outbreak of the conflict in the Middle East and the subsequent blockade of the Strait of Hormuz, a major global oil transit route.

Bello said sustained reductions in crude oil prices should translate into lower costs for refiners and marketers, urging them to pass the benefits to consumers. “If the decline in crude prices is sustained, there is no justification for refiners and marketers to continue to keep petrol and diesel prices relatively high. “We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” he said.

The FCCPC chief acknowledged the financial difficulties high fuel prices had imposed on Nigerians, assuring that the commission would continue to monitor developments in the downstream petroleum market. He said the commission would work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to track wholesale and retail petrol prices.

Bello added that the FCCPC would take appropriate action within its mandate where evidence of anti-competitive conduct or unfair practices was established to be preventing consumers from benefiting from lower costs.