By Oluwakemi Kindness
The Federal Competition and Consumer Protection Commission (FCCPC) has warned fuel marketers against delaying reductions in petrol prices, saying it will investigate and sanction businesses found exploiting consumersThe Federal Competition and Consumer Protection Commission (FCCPC) has warned fuel marketers against delaying reductions in petrol prices, saying it will investigate and sanction businesses found exploiting consumers.
The warning on Sunday follows the Commission’s surveillance of the downstream petroleum market, which found that recent cuts in gantry and retail fuel prices do not reflect the sharp decline in global crude oil prices.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, says the Commission is concerned that marketers quickly raise pump prices when crude oil prices increase but are slow to pass on savings when prices fall.
“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall.
Competitive markets must work fairly in both directions,” Bello said.
According to the Commission in a statement by Ondaje Ijagwu, Director, coperate affair, global crude oil prices have dropped to about $73 per barrel, down from a peak of $120 per barrel in April following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.
The FCCPC says petrol prices surged to between ₦1,350 and ₦1,500 per litre during the spike in crude prices, but many filling stations still sell the product at an average of ₦1,200 per litre, despite lower crude prices.
While acknowledging that exchange rates, refining costs, logistics, financing and distribution affect local fuel prices, Bello said consumers should benefit from lower costs in a competitive market.
He stress that deregulation does not shield businesses from complying with the Federal Competition and Consumer Protection Act.
“Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the law, the Commission will investigate and take appropriate enforcement action,” he said.
The FCCPC urge Nigerians to report suspected price manipulation, anti-competitive conduct and other unfair market practices through its official complaint channels.
