FCCPC Warns Marketers, Importers, Refinery Against Fuel Exploitation

FCCPC Warns Marketers, Importers, Refinery Against Fuel Exploitation

The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned refiners, fuel importers, depot operators and marketers against taking advantage of consumers despite the drop in global crude oil prices.

The warning followed findings that petrol prices have only fallen slightly even though crude oil has become cheaper.

The commission also noted that petrol import costs have dropped below the current refinery selling price.

FCCPC said its review of the downstream petroleum market showed that gantry and retail prices were not moving in line with changes in the international oil market.

The commission explained that while it does not fix fuel prices in a deregulated market, it has the duty to stop unfair business practices and ensure healthy competition.

It warned that any evidence of exploitation or anti-competitive conduct would attract investigation and possible sanctions.

Industry operators defended the slow reduction in prices, saying several business factors were responsible.

They pointed to the cost of old fuel stock, exchange rate pressures, transport expenses and financing costs.

Marketers added that products bought at higher prices must first be sold before bigger reductions can be made, while refiners said the weaker naira continues to affect production costs.

Market data showed that petrol import landing cost has fallen to N983.92 per litre, below Dangote Refinery’s N1,125 per litre gantry price.

The Nigerian National Petroleum Company Limited and Dangote Refinery have already reduced their prices in recent days, while MEMAN said Nigeria still records the lowest petrol prices in West Africa.

FCCPC urged consumers to report any unfair pricing or suspicious market behaviour through its complaint channels.