By Nkechi Eze
The Federal Competition and Consumer Protection Commission (FCCPC) has intensified monitoring of petrol and diesel prices across the country following the decline in international crude oil prices, expressing expectations that the development will translate into lower costs for Nigerian consumers.
The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr Tunji Bello, gave the assurance on Tuesday while responding to public enquiries over the continued high cost of petroleum products despite the recent drop in global crude prices.
According to an official statement signed by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, Brent crude futures have fallen from a peak of $115 per barrel in September to below $90 this week.
The Commission disclosed that petrol currently sells at an average of between N1,405 and N1,420 per litre in Abuja, while prices in Lagos range from N1,325 to N1,370 per litre.
It noted 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, with petrol selling between N839 and N925 per litre in Lagos and Abuja.
The FCCPC observed that petroleum marketers had attributed the increase in fuel prices over the past eight months to fluctuations in international crude oil prices following the conflict in the Middle East and the subsequent blockade of the Strait of Hormuz, a major route for global oil transportation.
Bello said the Commission was monitoring developments in the international oil market to ensure that any sustained reduction in crude prices translates into lower wholesale and retail prices of petroleum products.
“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.
He acknowledged the economic difficulties Nigerians had experienced as a result of high fuel prices, assuring that the Commission would continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to track wholesale and retail petroleum prices.
The FCCPC chief executive further warned that the Commission would take appropriate action within its mandate where evidence of anti-competitive conduct or unfair market practices was established, particularly practices capable of preventing consumers from benefiting from declining costs.
He reiterated the Commission’s commitment to protecting consumers and ensuring that developments in the international petroleum market are fairly reflected in domestic pricing.
