Nigeria Fuel Regulator Tells Sellers to Maintain Prices

The Federal Competition and Consumer Protection Commission warned refiners, importers, depot operators, marketers and retail outlet owners against exploiting consumers. The commission said its surveillance found gantry and retail prices had not declined in line with falling international crude oil prices.

Petrol import landing cost dropped to N983.92 per litre, below the Dangote Refinery gantry price of N1,125 per litre, according to data from the Major Energies Marketers Association of Nigeria. The commission noted that crude oil prices have declined since the easing of tensions in the Middle East, including a ceasefire between Israel and Iran and the reopening of the Strait of Hormuz.

Earlier spikes during the conflict pushed local petrol prices to between N1,350 and N1,500 per litre and diesel to about N2,000 per litre. Despite the decline in international crude prices, petrol still sells for about N1,200 per litre in many parts of Nigeria.

The commission acknowledged that domestic pump prices are influenced by refining costs, foreign exchange movements, logistics, financing and distribution expenses. It said it expects competitive market dynamics to ensure cost savings reach consumers more promptly.

"To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market," the FCCPC Executive Vice Chairman and Chief Executive Officer said in a statement on Sunday. " The commission said it will investigate and take enforcement action where credible evidence shows conduct that undermines competition or exploits consumers.

It urged consumers to report suspected anti-competitive conduct through established complaint channels. Industry groups stated that commercial factors, including inventory positions, exchange-rate hedging and distribution costs, are slowing the pass-through of lower costs to pump prices.