Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to oil marketers, depot operators, and refiners over what it described as the "undue exploitation" of Nigerian consumers, following findings that retail petrol prices have remained stubbornly high despite a dramatic collapse in global crude oil prices from a peak of $120 per barrel in April to about $73 per barrel in recent weeks. In a statement issued on Sunday, June 28, 2026, the commission said its ongoing surveillance of the downstream petroleum sector revealed only "token reductions" in gantry and retail prices that are "not commensurate with the steep fall in crude prices in the global market." The warning comes just days after Dangote Refinery reduced its ex-depot petrol price from ₦1,175 to ₦1,125 per litre, a move that has heightened expectations of further reductions in pump prices across the country.
The FCCPC's intervention follows a sharp reversal in global oil markets triggered by a ceasefire agreement between the United States and Iran and the reopening of the strategic Strait of Hormuz, a vital shipping lane through which approximately one-fifth of the world's oil passes. According to the commission, crude oil prices surged to about $120 per barrel in April and May amid fears of supply disruptions as hostilities intensified in the Middle East. During that period, local refiners and marketers responded with near-immediate price hikes, pushing petrol pump prices to between ₦1,350 and ₦1,500 per litre across the country, while diesel climbed to about ₦2,000 per litre. In stark contrast, Premium Motor Spirit (PMS) sold for between ₦800 and ₦900 per litre in February, before the conflict began.
Despite the subsequent easing of geopolitical tensions and the return of crude prices to February levels, the commission observed that petrol is still being sold at an average of about ₦1,200 per litre across many parts of the country, while some local refiners have fixed ex-depot prices between ₦1,025 and ₦1,075 per litre. The FCCPC acknowledged that domestic fuel prices are influenced by a range of commercial and market factors, including refining costs, foreign exchange fluctuations, logistics, financing, and distribution expenses. However, it maintained that competitive market dynamics should ordinarily have ensured that cost savings from lower crude prices are passed on to consumers more promptly.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, clarified that the commission does not regulate or approve petroleum prices in Nigeria's deregulated downstream market. "Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices," Bello said in the statement. He expressed concern over what he described as a one-sided response to changes in crude oil prices, noting that marketers often respond swiftly by hiking pump prices whenever crude prices rise, yet consumers are made to wait indefinitely for significant benefits when prices fall. "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. Competitive markets must work fairly in both directions," he added.
Bello warned that deregulation does not absolve businesses of their obligation to compete fairly or respect consumer rights. "Market liberalisation does not diminish businesses' obligations to compete fairly or consumers' right to fair treatment," he said. He affirmed that 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. He also urged consumers to continue reporting suspected anti-competitive conduct, misleading pricing practices, and other forms of unfair market behaviour through the commission's established complaint channels.
Industry groups, however, have pushed back against the commission's concerns, arguing that commercial realities explain why pump prices have not fallen as sharply as crude oil prices. The Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, told reporters that marketers were adjusting prices based on commercial realities and location, noting that inventory positions, exchange-rate hedging, and distribution costs were slowing the pass-through of lower costs to pump prices. "Market reality may not allow a significant price drop, given that the Middle East crisis is yet to fully settle," Isong said. "Prices have started coming down, but marketers are adjusting based on commercial considerations. We bought products under difficult market conditions and would not want to incur losses by quickly reducing prices". According to MEMAN data, the petrol import landing cost has dropped to N983.92 per litre, falling below Dangote Refinery's gantry price of N1,125 per litre.
The FCCPC's warning comes amid growing public frustration over the disparity between global oil prices and domestic fuel costs. Market analysts and consumer groups have called for pump prices to fall below N1,000 per litre, noting that petrol sold between N800 and N900 per litre before the conflict-driven surge. Brent crude, the global oil benchmark, dropped to $72.97 per barrel as of June 26, its lowest level since February. The commission's intervention also follows similar scrutiny in the United States, where President Donald Trump recently accused US oil firms of petrol price gouging and directed the Department of Justice to immediately investigate oil marketing companies.
For Nigerian consumers, the FCCPC's warning offers a glimmer of hope that the benefits of falling crude prices may finally reach the pump. However, with marketers citing commercial constraints and the Middle East crisis still simmering, the question remains: how long will Nigerians have to wait before they see tangible relief? As the commission made clear, it will not hesitate to act against any company found exploiting consumers. "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," Bello declared. The ball is now in the court of the marketers.
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