“We expect easing in wholesale petrol costs,” FCCPC announces plan to monitor fuel pump price as crude oil price falls below $90/barrel
The Federal Competition and Consumer Protection Commission (FCCPC) says it is closely monitoring the continued drop in crude oil prices in the international market to ensure the gains are reflected in what Nigerians pay at the filling stations.
The FCCPC disclosed the move in a statement on Tuesday, issued by Ondaje Ijagwu, its spokesperson.
“Latest reports indicate that Brent futures have fallen from the peak of $115 in September to below $90 this week in the international market,” the statement reads.
“In the country today, petrol prices average between ₦1,405 and ₦1,420 per litre in Abuja and between ₦1,325 and ₦1,370 in Lagos.
“On 27 February, the day before the war involving the United States, Israel and Iran began, Brent crude futures closed at US$72.48 per barrel. Around that time, petrol sold for between ₦839 and ₦925 per litre at filling stations in Lagos and Abuja.”
The commission said petroleum products marketers have often attributed the surge in prices over the last eight months to volatility in crude oil prices following the outbreak of the US-Iran conflict in the Middle East and the resulting blockade of the Strait of Hormuz.
Commenting on the development, Tunji Bello, chief executive officer (CEO) of the commission, said sustained lower crude prices would leave refiners and marketers with no justification for keeping 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,” Bello said.
He said the agency would continue to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant government agencies to monitor wholesale and retail petrol prices.
“We are aware of the difficulties high pump prices have caused Nigerians for some time now,” Bello said.
“Let me reassure 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.”
The CEO added that the commission would take action within its mandate where evidence of anti-competitive conduct or unfair practices prevents consumers from benefiting from lower costs, “we will take appropriate action within our mandate”.
