The Federal Competition and Consumer Protection Commission (FCCPC) has intensified its monitoring of petrol prices following another decline in international crude oil prices, urging petroleum refiners and marketers to reflect lower supply costs in the prices Nigerians pay at filling stations.
The commission said consumers should benefit from the recent changes in the global oil market, especially as high fuel prices continue to increase transportation costs and place financial pressure on households and businesses.
The FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, gave the assurance in a statement issued on Tuesday, November 10, following public enquiries about the continued high cost of petroleum products despite falling crude prices.
According to the commission, Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 per barrel this week. However, the reduction in international prices has yet to translate into similar relief for Nigerian consumers.
The FCCPC disclosed that petrol currently sells for between ₦1,405 and ₦1,420 per litre in Abuja, while filling stations in Lagos sell the product for between ₦1,325 and ₦1,370 per litre.
These prices have raised concerns about how quickly changes in the international oil market reflect in the domestic petroleum sector, particularly as Nigerians continue to deal with the rising cost of living.
FCCPC Petrol Price Monitoring: Commission Demands Lower Costs
Bello maintained that refiners and petroleum marketers should not continue to maintain relatively high prices if the decline in crude oil prices proves sustainable.
He explained that lower crude prices should reduce wholesale petroleum costs, allowing marketers to adjust their prices and pass the resulting savings to consumers without unnecessary delays.
The commission also compared current market conditions with the period before the recent conflict involving the United States, Israel and Iran.
According to its statement, Brent crude futures closed at $72.48 per barrel on February 27, a day before the conflict began. Around that period, petrol sold for between ₦839 and ₦925 per litre at filling stations in Lagos and Abuja.
Since then, disruptions in the international oil market have contributed to higher crude prices and increased petroleum costs. In particular, tensions surrounding the Strait of Hormuz have affected concerns about global oil shipments because the waterway serves as a major route for international energy supplies.
Petroleum marketers have frequently linked recent fuel price increases to these developments and the resulting volatility in the global oil market.
Nevertheless, the FCCPC expects sustained reductions in crude prices to ease wholesale costs and eventually reflect in retail prices.
FCCPC to Work With NMDPRA on Fuel Price Monitoring
The commission said it would continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor wholesale and retail petroleum prices across the country.
Through this collaboration, the FCCPC intends to track market developments and identify practices that could prevent consumers from benefiting from lower supply costs.
Bello acknowledged that high petrol prices have created significant difficulties for Nigerians over time. He also assured consumers that the commission would take appropriate action within its legal mandate whenever it identifies evidence of anti-competitive conduct or unfair market practices.
However, the commission’s intervention does not amount to a nationwide price control measure. Nigeria’s downstream petroleum market operates under a deregulated pricing system, which allows market participants to determine prices according to prevailing market conditions.
Therefore, the FCCPC’s responsibility includes protecting consumers, promoting fair competition and addressing practices that undermine the market.
Nigerians Await Possible Relief at Filling Stations
The latest development has renewed expectations that falling international crude prices could eventually reduce the cost of petrol in Nigeria.
Lower fuel prices could also provide relief to transport operators, manufacturers, small businesses and households that depend on petroleum products for their daily activities.
However, changes in international crude prices do not automatically produce immediate reductions at filling stations. Other factors, including exchange rates, refining costs, transportation, distribution expenses and existing stock purchased at earlier prices, can influence the final retail price.
For this reason, consumers will be watching how refiners and marketers respond as international crude prices continue to decline.
Although the FCCPC has not announced a new nationwide petrol price or ordered an immediate reduction, its monitoring effort places renewed attention on the relationship between wholesale supply costs and retail fuel prices.
The coming weeks will therefore show whether the recent decline in crude oil prices translates into meaningful savings for Nigerian consumers.