Falling crude prices: FCCPCvows to monitor pump rates, protect consumers

Orisemeke Benjamin

The Federal Competition and Consumer Protection Commission (FCCPC) has announced that it is closely tracking the sustained decline of international crude oil prices to ensure that the downward trend immediately reflects in retail pump prices across the country.

According to a statement signed by Ondaje Ijagwu, Director of Corporate Affairs at the Commission, the Executive Vice Chairman and Chief Executive Officer of the Commission, Mr. Tunji Bello, gave this assurance following a surge in public enquiries regarding the cost of petroleum products.

Recent global market data shows that Brent futures have tumbled from a peak of $115 per barrel in September to below $90 this week. Despite this significant drop, petrol prices at home currently average between N1,405 and N1,420 per litre in Abuja, and range from N1,325 to N1,370 in Lagos.

By comparison, on February 27, the eve of the conflict involving the United States, Israel, and Iran, Brent crude closed at $72.48 per barrel, with petrol selling between N839 and N925 per litre in both cities. Petroleum marketers have previously blamed price spikes over the past eight months on Middle East volatility and the strategic blockade of the Strait of Hormuz, which handles a quarter of global oil traffic.

However, Mr. Bello maintained that sustained international decreases leave no room for bloated domestic prices.

“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,” Bello stated.

Acknowledging the persistent hardships high fuel costs have inflicted on citizens, the FCCPC boss stressed that the agency is partnering with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other regulatory bodies.

He warned that the government will not hesitate to clamp down on any anti-competitive conduct or unfair practices designed to deny consumers the benefits of falling global costs.