Nigeria's competition authority has ordered oil refiners and marketers to cut petrol and diesel prices following a sharp decline in international crude oil costs, insisting that consumers must benefit from lower production expenses. The Federal Competition and Consumer Protection Commission said it was tracking global oil market movements to ensure that falling crude prices translated into reductions at filling stations nationwide. Brent crude futures have fallen from a peak of $115 per barrel in September to below $90 this week, according to the latest market reports.
The FCCPC's Executive Vice Chairman and Chief Executive Officer, Tunji Bello, issued the warning in a statement released on Tuesday through the commission's Director of Corporate Affairs, Ondaje Ijagwu, following public concern over persistently high fuel costs. Bello stated that if the decline in crude prices continued, there was no justification for refiners and marketers to maintain relatively high petrol and diesel prices. He added that wholesale petrol costs should ease and that resulting savings must reach consumers at the pump without delay.
Despite the significant drop in crude prices over recent months, petrol prices in Nigeria remain elevated. In Abuja, petrol sells for between N1,405 and N1,420 per litre, while Lagos motorists pay between N1,325 and N1,370 per litre. This contrasts sharply with February 27, when Brent crude futures closed at $72.48 per barrel and petrol sold for between N839 and N925 per litre in Lagos and Abuja. Industry marketers have blamed the price increases over the past eight months on volatility in international crude prices following Middle East conflict and the blockade of the Strait of Hormuz, a critical global oil shipping route.
The FCCPC acknowledged the burden high fuel prices have placed on Nigerian households and businesses, pledging to continue monitoring pricing across the downstream petroleum market. Bello said the commission would collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other government bodies to track wholesale and retail prices. He warned that where evidence emerged of anti-competitive conduct or unfair practices preventing consumers from benefiting from lower costs, the FCCPC would take appropriate action within its mandate. The intervention reflects continued public concern about the gap between international crude price movements and domestic fuel costs, even as Nigeria has expanded domestic refining capacity through facilities including the Dangote Petroleum Refinery.