NEWS
FCCPC Says Falling Crude Prices Leave No Justification for High Petrol, Diesel Costs
FCCPC Says Falling Crude Prices Leave No Justification for High Petrol, Diesel Costs
Brent crude futures have fallen from a September peak of $115 to below $90 per barrel, according to the FCCPC.
Petrol prices average between ₦1,405 and ₦1,420 per litre in Abuja and ₦1,325 and ₦1,370 in Lagos.
The Commission says it will monitor wholesale and retail prices and act against anti-competitive practices.
November 11, () – The Federal Competition and Consumer Protection Commission has said the continued decline in international crude oil prices leaves no justification for refiners and marketers to maintain relatively high petrol and diesel prices in Nigeria.
The Commission said the reduction in crude prices should translate into lower wholesale costs and pump prices, allowing consumers to benefit from easing international market conditions.
The position was disclosed in a statement signed by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, on Tuesday.
The Executive Vice Chairman and Chief Executive Officer of the Commission, Tunji Bello, said the agency was monitoring the decline in global crude oil prices to ensure that the reduction is reflected in the prices Nigerians pay at filling stations.
According to the Commission, Brent crude futures have dropped from a peak of $115 per barrel in September to below $90 this week.
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Bello said petrol prices currently average between ₦1,405 and ₦1,420 per litre in Abuja, while prices in Lagos range from ₦1,325 to ₦1,370 per litre.
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FCCPC Chief Executive Officer Tunji Bello Photo credit FCCPC
FCCPC compares current prices with February levels
The FCCPC chief recalled that Brent crude futures closed at $72.48 per barrel on February 27, a day before the conflict involving the United States, Israel and Iran began.
At the time, petrol sold for between ₦839 and ₦925 per litre at filling stations in Lagos and Abuja.
The Commission acknowledged that marketers had attributed the increase in petroleum product prices over the past eight months to volatility in crude oil prices following the conflict and the blockade of the Strait of Hormuz, a major route for global oil shipments.
However, Bello said that if the decline in crude prices was sustained, refiners and marketers would have little justification for keeping petrol and diesel prices relatively high.
He said the Commission expected lower wholesale petrol costs and the resulting savings to be passed on to consumers without undue delay.
Commission warns against anti-competitive practices
Bello said the FCCPC recognised the pressure that high petroleum product prices had placed on Nigerians and would continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other relevant agencies to monitor wholesale and retail prices.
He added that the Commission would take appropriate action within its statutory powers where evidence showed that anti-competitive conduct or unfair market practices were preventing consumers from benefiting from lower costs.
The latest position follows earlier concerns raised by the FCCPC over the slow reduction in petrol prices by refiners, marketers, depot operators and retailers despite a decline in international crude oil prices.
The Commission’s intervention places attention on how quickly changes in global crude prices are reflected across Nigeria’s downstream market, particularly in wholesale supply costs and retail pump prices.
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