Nigeria's Federal Competition and Consumer Protection Commission expects petrol prices at the pump to decline as international crude oil costs fall, the regulator said on Tuesday. The FCCPC's Executive Vice Chairman, Tunji Bello, said in a statement that the commission is monitoring crude oil price movements to ensure gains in the international market are passed to consumers without delay. The monitoring follows public complaints and enquiries about fuel costs.
Brent crude futures have fallen from a peak of $115 per barrel in September to below $90 this week, according to the FCCPC. Petrol currently sells for between N1,405 and N1,420 per litre in Abuja and between N1,325 and N1,370 in Lagos. For comparison, on 27 February, when Brent crude futures closed at $72.48 per barrel, petrol sold for between N839 and N925 per litre at filling stations in Lagos and Abuja.
Bello said petroleum marketers have attributed price increases over the last eight months to volatility in crude oil following the outbreak of conflict in the Middle East. However, he argued that if the decline in crude prices continues, there is no justification for refiners and marketers to maintain relatively high petrol and diesel prices. The regulator acknowledged the hardship that elevated fuel costs have caused consumers.
The FCCPC said it will continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to monitor wholesale and retail petrol prices. The commission said it will take action within its mandate if it finds evidence of anti-competitive conduct or unfair practices that prevent consumers from benefiting from lower crude costs.
Lower petrol prices would reduce transport and production costs for businesses and decrease the cost of living for households dependent on petrol for daily needs, based on the price comparisons the regulator provided.