The Federal Competition and Consumer Protection Commission (FCCPC) has warned oil marketers, depot owners and retail operators to reduce petrol pump prices in line with falling global crude oil prices or face regulatory action.

The commission said it observed that despite significant reductions in ex-depot prices by domestic refiners, pump prices have remained largely unchanged, with only marginal adjustments that do not reflect the sharp decline in global oil prices.

Following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, global crude prices have dropped to pre-conflict levels, with Brent crude trading at $71.99 per barrel and West Texas Intermediate (WTI) at $69.23. Despite this, petrol continues to sell for an average of N1,200 per litre, although some refiners have lowered ex-depot prices to between N1,025 and N1,075 per litre.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said while the commission does not regulate prices in the deregulated downstream petroleum sector, it is empowered by the Federal Competition and Consumer Protection Act 2018 to prevent anti-competitive practices and protect consumers from unfair pricing.

According to Bello, marketers are often quick to increase pump prices when crude oil prices rise but have been slow to pass on the benefits of lower costs to consumers. He stressed that market liberalisation does not exempt businesses from the obligation to compete fairly or treat consumers equitably.

The commission warned that it would investigate and take enforcement action against any conduct that undermines competition, exploits consumers or violates the provisions of the FCCPC Act.