FG Takes Action as Global Crude Oil Prices Fall

The Federal Government through the Federal Competition and Consumer Protection Commission (FCCPC) has announced plans to closely monitor petrol and diesel prices across Nigeria following a significant decline in international crude oil prices.

According to the commission, it would work with relevant government agencies to ensure that the reduction in global oil prices translates into lower costs for consumers at filling stations.

The FCCPC disclosed this in a statement issued on Tuesday by its spokesperson, Ondaje Ijagwu.

It noted that Brent crude futures had dropped from a peak of $115 per barrel in September to below $90 this week.

According to the commission, the decline in international crude oil prices comes after months of increases in the domestic prices of petroleum products, which marketers had largely attributed to volatility in the global oil market.

The commission said petrol currently sells for an average of between N1,405 and N1,420 per litre in Abuja, while prices in Lagos range between N1,325 and N1,370 per litre.

It further recalled that on February 27, a day before the conflict involving the United States, Israel and Iran began, Brent crude futures closed at $72.48 per barrel.

At the time, petrol was selling for between N839 and N925 per litre at filling stations in Lagos and Abuja.

The FCCPC noted that petroleum marketers had repeatedly blamed the increase in petrol prices over the past eight months on rising crude oil prices and uncertainties arising from the conflict in the Middle East, including the blockade of the strategic Strait of Hormuz.

However, with international crude oil prices now declining, the commission said refiners and petroleum marketers should reflect the reduction in their operating costs in the prices charged to consumers.

Commenting on the development, FCCPC Chief Executive Officer, Tunji Bello, said the sustained decline in crude oil prices should result in lower wholesale costs for petroleum products.

He stressed that consumers should not continue to pay elevated prices when the international market conditions responsible for previous increases were beginning to ease.

“We expect easing in wholesale petrol costs and for the resulting savings to reach consumers at the pump without undue delay,” Bello said.

The FCCPC boss acknowledged the difficulties Nigerians had faced as a result of high petrol prices, adding that the commission would continue to monitor developments in the downstream petroleum sector.

“We are aware of the difficulties high pump prices have caused Nigerians for some time now,” he said.

Bello also assured consumers that the commission would collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to track changes in wholesale and retail petroleum prices.

According to him, the monitoring exercise is aimed at ensuring that reductions in international crude oil prices are not ignored by refiners and marketers when determining the prices of petroleum products sold to Nigerians.

The FCCPC further warned that it would not hesitate to intervene where evidence shows that anti-competitive behaviour or unfair market practices are preventing consumers from benefiting from lower production and supply costs.

Bello said the commission would take appropriate action within its statutory mandate against any practices that undermine competition or unfairly disadvantage consumers.

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