FCCPC moves to force down fuel prices as global crude oil rates decline

The Federal Competition and Consumer Protection Commission, FCCPC, has said it is monitoring the sustained decline in global crude oil prices to ensure that the reduction translates into lower petrol prices for Nigerians.

The Chief Executive Officer of the Commission, Mr Tunji Bello, disclosed this on Tuesday in a statement issued by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu.

According to the statement, the latest market reports show that Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 this week.

In Nigeria, petrol currently sells for between N1,405 and N1,420 per litre in Abuja, while prices range from N1,325 to N1,370 in Lagos.

However, a day before the outbreak of the war involving the United States, Israel and Iran in February, Brent crude futures closed at $72.48 per barrel.

At the time, petrol sold for between N839 and N925 per litre at filling stations in Lagos and Abuja.

Petroleum marketers have frequently attributed the increase in fuel prices over the past eight months to fluctuations in global crude oil prices following the outbreak of the US-Iran conflict in the Middle East, which led to the blockade of the Strait of Hormuz, a major route for at least 25 per cent of global oil shipments.

Bello said a sustained decline in crude oil prices should compel refiners and marketers to review their petrol and diesel prices.

He said, “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.”

The FCCPC boss acknowledged the hardship caused by high fuel prices, assuring Nigerians that the Commission would continue to collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to monitor wholesale and retail petroleum prices.

He added that the Commission would take appropriate action where evidence of anti-competitive practices or unfair conduct prevents consumers from benefiting from declining costs.