By Monsurat Abisoye
The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned petrol marketers against exploiting consumers by failing to reduce fuel prices in line with declining global crude oil prices.
In a statement issued on Sunday by its Director of Corporate Affairs, Ondaje Ijagwu, the commission said ongoing surveillance of the downstream petroleum sector showed that consumers were yet to fully benefit from the recent drop in international oil prices.
According to the FCCPC, marketers and local refiners quickly increased pump prices when crude prices surged during tensions in the Gulf between April and May, pushing petrol prices to between N1,350 and N1,500 per litre and diesel prices to as high as N2,000 per litre. However, despite the decline in crude prices, petrol still sells for an average of N1,200 nationwide, while some local refiners have fixed gantry prices at between N1,025 and N1,075 per litre.
The commission described the price reductions so far as insignificant and not reflective of the sharp fall in global oil prices. FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said operators in the downstream sector often respond swiftly to rising crude prices by increasing pump prices but are reluctant to pass on the benefits when prices decline.
Bello stressed that although the FCCPC does not regulate petroleum prices in a deregulated market, it has a statutory responsibility to promote competition and protect consumers from unfair, deceptive, and exploitative practices. He insisted that competitive markets must operate fairly and that consumers should benefit from price reductions just as quickly as they experience price increases.
