The Federal Competition and Consumer Protection Commission (FCCPC) has issued a warning to oil marketers over the continued disparity between falling global crude oil prices and pump prices of Premium Motor Spirit (PMS) in Nigeria
This is as it threatened to sanction operators found to be engaging in exploitative or anti-competitive conduct.
The Commission expressed concern that while marketers are quick to increase fuel prices whenever crude oil prices rise, they have been conspicuously slow in passing on the benefits of the current sharp decline in international crude oil prices to Nigerian consumers.
Global crude prices, which peaked at approximately $120 per barrel in April following geopolitical tensions in the Middle East, have now plunged to about $73 per barrel after the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.
This represents a decline of more than 41 per cent. Yet, despite this significant drop, petrol is still retailing at an average of N1,200 per litre across the country.
Speaking on the development, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, clarified that while the downstream petroleum sector operates under a deregulated pricing regime, liberalisation does not give operators the freedom to engage in exploitative practices.
“To be clear, the Commission does not regulate or approve petroleum prices in a 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 stated.
He added: “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.”
The Commission acknowledged that domestic fuel prices are influenced by a range of commercial factors, including refining costs, foreign exchange fluctuations, logistics, financing, and distribution expenses. Nevertheless, it maintained that the magnitude of the decline in crude oil prices should have translated into more noticeable relief for consumers.
Bello warned that the Commission would not hesitate to investigate and impose sanctions on any operator found to be engaging in conduct that undermines competition or exploits 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,” he declared.
The FCCPC’s warning follows findings from its ongoing surveillance of the downstream petroleum sector, which showed that reductions in gantry and pump prices have been insignificant despite the sharp decline in international crude oil prices.
The Commission noted that while Dangote Petroleum Refinery recently slashed its ex-depot price by N125 per litre, from N1,250 to N1,125, retail prices have stubbornly remained around N1,200 per litre in many parts of the country.
Bello also urged Nigerians to report suspected cases of anti-competitive conduct, misleading pricing practices, and other unfair market behaviour through the Commission’s established complaint channels.
The FCCPC’s warning comes amid mounting public concern over the pace at which fuel prices respond to movements in global crude oil prices, with consumers questioning why pump prices rise almost immediately during periods of international price increases but decline only marginally when crude prices fall.
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Findings by reveal that before the outbreak of the Gulf conflict in February 2026, petrol sold for between N830 and N900 per litre across much of Nigeria. As crude prices surged by approximately 85 per cent, pump prices climbed to around N1,360 per litre, representing an increase of about 54 per cent.
However, while crude oil has now surrendered much of its war-induced gains, domestic petrol prices have been far slower to follow suit. Energy experts suggest that even after accounting for exchange rates, shipping charges, storage costs, transportation expenses, dealer margins, and taxes, PMS should realistically retail at around N1,000 per litre.
Parallels with US Investigation
The issue is not peculiar to Nigeria. In the United States, President Donald Trump has ordered the Department of Justice to investigate major oil companies over allegations that they are failing to reduce pump prices in line with falling crude oil costs.
In a post on Truth Social on Wednesday, Trump accused oil companies of exploiting consumers, writing: “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged’.”
“I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!” he added.
The FCCPC’s action signals a renewed determination by the regulatory agency to ensure that the benefits of market liberalisation are not eroded by exploitative practices that undermine consumer welfare.
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