The Federal Competition and Consumer Protection Commission (FCCPC) has warned refiners and marketers that there is no justification to keep petrol and diesel prices high as crude oil prices continue to fall in the international market.
FCCPC Director, Corporate Affairs, Ondaje ljagwu, disclosed this in a statement on Tuesday.
Mr Ijagwu said the commission is closely monitoring pump prices to ensure that the gain from falling crude prices is reflected in what Nigerians pay at filling stations.
He said the assurance was given on Tuesday by the Executive Vice Chairman and Chief Executive Officer of the commission, Tunji Bello, following public enquiries.
Crude falls from $115 to below $90
FCCPC said latest reports indicate that Brent futures have fallen from a peak of $115 in September to below $90 this week in the international market.
In Nigeria, however, petrol prices remain high.
Petrol currently sells for between N1,405 and N1,420 per litre in Abuja and between N1,325 and N1,370 in Lagos, according to the commission.
That is a sharp rise from 27 February, the day before the war involving the United States, Israel and Iran began, when Brent crude futures closed at $72.48 per barrel.
Around that time, petrol sold for between N839 and N925 per litre at filling stations in Lagos and Abuja.
Marketers blamed war, Hormuz blockade
FCCPC said marketers of petroleum products often attribute the spike in prices in the last eight months to volatility in crude prices following the outbreak of the US-Iran conflict in the Middle East, resulting in the blockade of the Strait of Hormuz, the gateway for at least 25 per cent of global oil traffic.
But with crude prices now falling, the FCCPC says that explanation no longer holds.
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“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,” Mr Bello said.
FCCPC to track prices with NMDPRA
The commission said it will continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to track wholesale and retail petrol prices
“We are aware of the difficulties high pump prices have caused Nigerians for some time now. Let me reassure you that the commission will continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant government agencies to track wholesale and retail petrol prices.
“Where there is evidence of anti-competitive conduct or unfair practices that prevent consumers from benefiting from lower costs, we will take appropriate action within our mandate,” he said.
