Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has warned refiners, depot operators, fuel marketers and retail outlet owners that they could face regulatory sanctions if ongoing investigations uncover evidence of anti-competitive conduct or consumer exploitation in the downstream petroleum sector.
The warning follows market surveillance by the Commission, which found that reductions in petrol prices have remained modest despite a significant decline in international crude oil prices. Brent crude has retreated to about $73 per barrel, following the easing of geopolitical tensions after the US-Iran ceasefire and the reopening of the Strait of Hormuz. The benchmark had climbed to around $120 per barrel in April during heightened regional uncertainty.
Speaking on the development, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, stressed that although Nigeria operates a deregulated downstream petroleum market, businesses are still bound by competition and consumer protection laws under the Federal Competition and Consumer Protection Act, 2018.
Bello said the Commission was concerned that petrol marketers typically respond quickly by increasing pump prices whenever crude oil costs rise, yet reductions have been considerably slower when international prices decline.
“Competitive markets must work fairly in both directions,” he said, noting that consumers deserve to benefit from lower input costs just as rapidly as they bear the impact of higher ones.
The disparity has become more pronounced in recent months. During the geopolitical tensions between April and May, petrol prices surged to between ₦1,350 and ₦1,500 per litre, while diesel sold for around ₦2,000 per litre in several parts of the country.
Although some domestic refiners have since reduced their ex-depot, or gantry, prices to between ₦1,025 and ₦1,075 per litre, the average retail price of petrol still hovers around ₦1,200 per litre nationwide. That remains substantially higher than the ₦800 to ₦900 per litre range recorded in February, when global crude prices traded at comparable levels.
The Commission acknowledged that pump prices are influenced by several factors beyond crude oil prices, including foreign exchange movements, refining costs, transportation, storage and distribution expenses. Nevertheless, it argued that competitive market dynamics should have translated into more noticeable price relief for consumers.
Bello reiterated that deregulation does not grant market participants immunity from regulatory oversight. He warned that any evidence of price manipulation, collusion, abuse of market power or other practices that undermine fair competition would attract enforcement action under the Commission’s statutory mandate.
The FCCPC’s intervention comes as households and businesses continue to grapple with elevated energy costs, making fuel pricing a key economic issue. Market participants will now be closely watching the Commission’s investigations, which could shape competition enforcement in Nigeria’s liberalised petroleum industry while influencing consumer confidence and pricing behaviour across the sector.
