FCCPC warns marketers against consumer exploitation amid global drop in oil prices
The Federal Competition and Consumer Protection Commission (FCCPC) Sunday warned operators in the downstream petroleum sector against exploiting consumers following refusal to reflect the sharp decline in global crude oil prices at retail pump stations.
In a terse statement, Executive Vice Chairman/Chief Executive of the Commission, Tunji Bello, noted that ongoing surveillance of the downstream petroleum market by the commission had revealed that reductions in gantry prices by local refiners, marketers, depot operators, and retail outlet operators had been marginal and far below current global crude oil prices. According to a statement issued by FCCPC spokesman, Ondaje Ijagwu, Bello stressed that although the commission does not regulate or approve petroleum prices in the country’s deregulated downstream market, it would not hesitate to investigate and sanction operators found to be engaging in anti-competitive, deceptive, or exploitative practices in violation of the Federal Competition and Consumer Protection Act (FCCPA), 2018.
Bello said, “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. “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.”
According to the FCCPC boss, international crude prices have dropped sharply to about $73 per barrel following the ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, compared with a peak of about $120 per barrel recorded in April at the height of tensions in the Gulf. The commission noted that crude prices had effectively returned to their February levels, yet the decline had not been matched by a commensurate reduction in domestic fuel prices.
