BY TAIBAT UMMI YAKUBU

The Federal Competition and Consumer Protection Commission (FCCPC) has warned petroleum marketers and refiners against keeping petrol and diesel prices high despite the recent decline in international crude oil prices, insisting that Nigerians must begin to benefit from falling production costs.

The commission said the drop in crude prices from a September peak of $115 per barrel to below $90 this week should gradually reflect in domestic fuel prices, warning that it would take action against businesses found deliberately preventing consumers from enjoying the benefits of lower costs.

FCCPC Executive Vice Chairman and Chief Executive, Tunji Bello, said the commission was monitoring developments in the international oil market and assessing how changes in crude prices were affecting the cost of petroleum products in Nigeria.

He argued that continued reductions in crude prices would make it increasingly difficult for refiners and marketers to justify maintaining petrol and diesel prices at their current levels.

“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,” Bello said.

The warning comes as households and businesses continue to grapple with high energy costs, with petrol selling for between N1,405 and N1,420 per litre in Abuja and N1,325 and N1,370 in Lagos.

The commission's intervention has also renewed concerns over why Nigerians often experience sharp increases in fuel prices when international oil prices rise but do not enjoy equally noticeable reductions when the global market moves in the opposite direction.

Figures released by the FCCPC show that the situation has changed considerably since February, before the outbreak of the US-Israel-Iran conflict.

On February 27, a day before the conflict began, Brent crude futures closed at $72.48 per barrel, while petrol prices in Lagos and Abuja ranged between N839 and N925 per litre.

However, escalating tensions in the Middle East, particularly disruptions linked to the Strait of Hormuz, contributed to volatility in the international oil market and pushed domestic fuel prices higher.

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The strategic waterway handles at least 25 per cent of global oil traffic, making any disruption to shipping activities a major concern for crude oil supplies and petroleum product prices worldwide.

But with international crude prices now falling below $90 per barrel, the FCCPC says domestic operators must demonstrate that their pricing decisions reflect the changing market conditions.

Bello disclosed that the commission would intensify its collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor developments in wholesale and retail fuel markets.

In a statement issued by the FCCPC's Director of Corporate Affairs, Ondaje Ijagwu, the commission chief warned that operators found engaging in anti-competitive behaviour or unfair practices to prevent price reductions would face appropriate action.

He said the commission understood the financial difficulties Nigerians had endured because of persistently high fuel prices and remained committed to protecting consumers from exploitative market practices.

While acknowledging that falling crude prices do not automatically translate into immediate reductions at filling stations, Bello maintained that sustained declines should eventually lead to lower wholesale and retail prices.

This is because refiners and marketers may still have petroleum products purchased or produced when crude oil prices were significantly higher, alongside other expenses such as refining costs, exchange rates, transportation, logistics and existing inventories.

Nevertheless, the FCCPC's warning places renewed pressure on petroleum operators to explain how they determine pump prices and whether consumers are receiving the benefits of improved conditions in the international oil market.

For millions of Nigerians already struggling with transportation, electricity and production costs, the central question remains whether the latest decline in crude prices will finally bring meaningful relief at filling stations.