FCCPC Warns Petrol Marketers Against Exploitative Pricing, Threatens Sanctions

FCCPC Warns Petrol Marketers Against Exploitative Pricing, Threatens Sanctions

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to petroleum marketers across the country, cautioning them against exploitative pricing of Premium Motor Spirit (PMS), popularly known as petrol, and vowing to sanction operators found engaging in unfair market practices.

The Commission expressed concern over the continued high retail price of petrol despite recent improvements in global crude oil prices and local supply conditions, insisting that consumers should begin to benefit from changing market realities.

The warning comes amid growing public dissatisfaction over the cost of fuel, which has remained significantly high months after international oil prices stabilised and supply chain disruptions eased.

According to the FCCPC, the sharp increase in petrol prices witnessed earlier this year was largely driven by rising crude oil prices triggered by geopolitical tensions in the Gulf region between April and May. During the period, pump prices of petrol surged to between ₦1,350 and ₦1,500 per litre in many parts of Nigeria, while diesel prices climbed to almost ₦2,000 per litre.

The Commission recalled that before the market disruptions, petrol sold for between ₦800 and ₦900 per litre in February. However, despite relative stability returning to the international oil market and improvements in domestic supply, the average retail price of petrol has remained around ₦1,200 per litre nationwide.

The FCCPC noted that current pricing by some local refineries suggests there should be greater room for downward adjustments in retail pump prices. According to the Commission, several domestic refiners are presently selling petrol at gantry prices ranging between ₦1,025 and ₦1,075 per litre, a development that should ordinarily encourage more competitive pricing among marketers.

While acknowledging that the pricing of petroleum products is influenced by multiple economic variables, including foreign exchange rates, transportation costs, financing expenses, refining costs and distribution logistics, the Commission maintained that these factors do not justify arbitrary or exploitative pricing.

It stressed that the deregulation and liberalisation of Nigeria’s downstream petroleum sector do not grant marketers unrestricted freedom to impose excessive prices on consumers.

Speaking on behalf of the Commission, Mr. Bello emphasised that operators in the downstream petroleum industry remain bound by the provisions of the Federal Competition and Consumer Protection Act, regardless of the liberalised nature of the market.

He said market liberalisation must go hand in hand with fair competition and responsible business conduct, warning that the Commission would not hesitate to investigate any credible allegation of anti-competitive practices or consumer exploitation.

According to him, “Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment. Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”

The FCCPC further warned that any evidence of price fixing, collusion among marketers, cartel behaviour or other anti-competitive agreements designed to keep fuel prices artificially high would attract severe regulatory sanctions.

The Commission also called on Nigerians to play an active role in protecting consumer rights by reporting suspicious pricing patterns, misleading price claims and other unfair market practices through its official complaint channels.

Industry observers believe the Commission’s intervention could increase regulatory scrutiny in the downstream petroleum sector, particularly as Nigerians continue to grapple with the rising cost of living and demand greater transparency in fuel pricing.

The FCCPC reiterated its commitment to promoting fair competition, protecting consumers from exploitation and ensuring that the benefits of market liberalisation are reflected in competitive prices rather than excessive profit-taking at the expense of ordinary Nigerians.

 

FCCPC Warns Petrol Marketers Against Exploitative Pricing, Threatens Sanctions