By Stellamaries Amuwa
The Federal Competition and Consumer Protection Commission (FCCPC) says it is monitoring the sustained decline in international crude oil prices to ensure that the reduction translates into lower petrol prices for Nigerian consumers.
The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr Tunji Bello, gave the assurance on Tuesday following public enquiries over the continued high cost of petrol despite falling crude prices.
According to a statement by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, the latest market reports indicate that Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 this week.
The Commission noted that petrol currently sells for an average of between ₦1,405 and ₦1,420 per litre in Abuja, while prices in Lagos range between ₦1,325 and ₦1,370 per litre.
It recalled that on February 27, a day before the outbreak of the war involving the United States, Israel and Iran, Brent crude futures closed at $72.48 per barrel, while petrol sold for between ₦839 and ₦925 per litre in Lagos and Abuja.
Petroleum marketers have often attributed the increase in fuel prices over the past eight months to volatility in international crude oil prices following the outbreak of the US-Iran conflict in the Middle East and the subsequent blockade of the Strait of Hormuz, a major route for global oil shipments.
Bello said a sustained decline in crude prices should lead to reductions in the cost of refined petroleum products, warning that refiners and marketers had no justification for maintaining high prices if their operating costs had declined.
“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.
The FCCPC boss acknowledged the hardship 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 and other relevant government agencies to monitor wholesale and retail prices.
He warned that the Commission would take appropriate action within its statutory mandate where evidence of anti-competitive conduct or unfair practices prevented consumers from benefiting from declining costs.
“Where there is evidence of anti-competitive conduct or unfair practices that prevent consumers from benefiting from lower costs, we will take appropriate action within our mandate,” Bello said.
