Nigeria: Global Crude Oil Prices Have Fallen But Petrol Price Hasn’t Dropped As Expected, FCCPC Tells Oil Marketers
Despite the de-escalation of Middle East tensions and the fall in global crude oil prices, petrol price has not dropped as expected in Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC) has threatened to take punitive action against oil marketers in the country if evidence of consumer exploitation is established.
FCCPC said preliminary findings from its ongoing surveillance of the petroleum market showed that reductions in depot and retail prices have been marginal.
Team@orientactualmags.com learned that Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, who said this at the weekend, also condemned the imbalance in the market’s response to fluctuations in crude prices.
‘We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall’ he said.
Noting that although the agency is not given authority to determine petroleum prices in a deregulated market, it however remains empowered under the FCCP Act to protect consumers from unfair and exploitative practices.
‘Competitive markets must work fairly in both directions’ he added.
A statement issued on Sunday by the Director of Corporate Affairs, FCCPC, Ondaje Ijagwu, said market surveillance has shown only token reductions by refiners, depot operators, marketers and retail outlet operators.
‘The agency expresses concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers’ the statement said.
Submitting that several factors influence domestic fuel prices, including exchange rate movements, transportation costs, financing expenses, refining costs and distribution charges, prevailing market conditions should however ordinarily have produced more substantial reductions at the pumps.
‘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’ Mr Bello said.
The FCCPC urged members of the public to report suspected cases of price manipulation, anti-competitive practices and other forms of exploitation of consumers-Team@orientactualmags.com Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08035023079, 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com. Thank you
