FCCPC vs petrol marketers: Why fuel prices remain a concern
The FCCPC says falling crude prices should benefit consumers, but petrol remains expensive across much of Nigeria.
For millions of Nigerians, the price of petrol shapes almost every aspect of daily life. It determines transport fares, influences the cost of moving food across the country and affects the operating expenses of businesses that still rely heavily on generators. When petrol prices rise, the effects ripple through the wider economy.
That is why the latest intervention by the Federal Competition and Consumer Protection Commission has attracted widespread attention. The Commission has warned refiners, depot operators and fuel marketers that it will investigate and sanction businesses found engaging in exploitative pricing or anti-competitive practices after observing that recent reductions in petrol prices have not matched the sharp decline in global crude oil prices.
The development has reignited debate over whether Nigeria’s deregulated petroleum market is working as intended or whether consumers are missing out on the benefits of lower international oil prices.
Why the FCCPC stepped in
The Commission’s concerns stem from the relationship between global crude oil prices and local petrol prices.
According to the FCCPC, international crude oil prices climbed to about $120 per barrel during heightened tensions involving the United States and Iran. Following the ceasefire and the reopening of the Strait of Hormuz, prices dropped sharply to about $73 per barrel, returning close to earlier levels. Yet despite that decline, petrol continues to sell for an average of about ₦1,200 per litre across many parts of Nigeria. During the earlier surge in crude prices, pump prices rose quickly to between ₦1,350 and ₦1,500 per litre, while petrol had sold for roughly ₦800 to ₦900 per litre before the spike.
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To the FCCPC, the issue is not that petrol prices should be fixed by government. Rather, it questions why prices appear to rise almost immediately when crude becomes more expensive but take much longer to decline when international costs fall.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, stressed that the Commission does not regulate or approve petrol prices in a deregulated market. He explained that its responsibility under the Federal Competition and Consumer Protection Act is to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices.
He said the Commission is concerned that while marketers often respond swiftly by increasing pump prices whenever crude oil prices rise, consumers are made to wait much longer before benefiting when crude prices fall, adding that competitive markets should work fairly in both directions.
Why prices do not always fall immediately
Although the Commission has raised concerns, it also acknowledges that crude oil prices are only one factor influencing what motorists pay at filling stations.
Fuel prices are also affected by foreign exchange movements, refining costs, transportation, depot charges, financing costs, storage and distribution expenses. Since petrol is traded in an increasingly liberalised market, changes in any of these costs can influence retail prices even when crude becomes cheaper.
Marketers have also argued that price reductions cannot happen overnight because existing fuel stocks may have been purchased at higher prices. According to the Independent Petroleum Marketers Association of Nigeria, retail prices are adjusted in line with reductions in ex-depot prices, meaning changes are often implemented in stages rather than immediately.
The debate has intensified following recent price reductions by the Dangote Refinery, which lowered its ex-depot petrol price and raised expectations that motorists would soon see more significant reductions at filling stations. While some marketers have adjusted their prices, the FCCPC believes the overall decline has not been sufficient when compared with the sharp fall in global crude oil prices.
The Commission has warned that where there is credible evidence of price fixing, exploitative pricing or other anti-competitive behaviour, it will investigate and take enforcement action under the law. At the same time, it has encouraged consumers to report suspected cases of unfair pricing and market manipulation.
For businesses, the controversy highlights the delicate balance between market liberalisation and consumer protection. Deregulation gives companies greater freedom to determine prices based on commercial realities, but it also creates expectations that competition will deliver fair outcomes for consumers.
For Nigerians, however, the issue is far more immediate. Petrol remains one of the country’s most influential economic commodities, and its price affects everything from commuting to food inflation. Whether the current scrutiny leads to lower pump prices or simply a deeper examination of competition within the downstream petroleum sector, the debate underscores a broader question about Nigeria’s energy market: if prices rise quickly when costs increase, should consumers not benefit just as quickly when those costs fall?
