Fuel Price Puzzle: Marketers Break Silence as FCCPC Questions Slow Petrol Price Cuts

The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the slow decline in petrol prices despite a sharp drop in global crude oil prices, warning refiners, importers, depot operators and marketers against exploiting consumers.

The warning comes as fresh data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that petrol import landing costs have fallen to N983.92 per litre—significantly below Dangote Refinery’s gantry price of N1,125 per litre.

Despite the reduction in crude oil prices following easing tensions in the Middle East, many filling stations across Nigeria continue to sell petrol for around N1,200 per litre, triggering questions about why pump prices have not fallen more sharply.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the commission’s ongoing surveillance of the downstream petroleum sector revealed that gantry and retail prices have not adjusted in line with declining international crude prices.

While emphasizing that the commission does not regulate petroleum prices in a deregulated market, Bello insisted that consumers deserve to benefit when costs fall.

“We are concerned that while dealers often respond swiftly by increasing pump prices whenever crude prices rise, consumers are yet to enjoy similar benefits when prices fall,” he stated.

The commission warned that any evidence of anti-competitive conduct, exploitative pricing or unfair market practices would trigger investigations and possible sanctions.

However, marketers and refiners argue that several commercial realities are delaying major reductions in pump prices.

MEMAN Executive Secretary, Clement Isong, explained that many marketers purchased products when market conditions were difficult and are reluctant to slash prices immediately and incur heavy losses.

“Prices have started coming down, but marketers are adjusting based on commercial considerations,” he said.

Similarly, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, noted that refiners and marketers are still selling inventories acquired during the period of high crude oil prices and would need time before implementing larger price cuts.

The Crude Oil Refinery Owners Association of Nigeria (CORAN) also pointed to exchange-rate pressures, stressing that fluctuations in the naira continue to affect final retail prices.

The pricing debate comes amid a series of recent adjustments by major industry players.

NNPC Limited has reportedly reduced petrol pump prices twice within one week, while Dangote Petroleum Refinery cut its gantry price by N50 per litre, lowering it from N1,175 to N1,125 per litre following the de-escalation of tensions in the Middle East.

According to MEMAN, while the current spot import parity price is below Dangote’s gantry price, the 30-day average import parity remains slightly higher, suggesting that longer-term market trends still provide some advantage for local refining.

Analysts and consumer groups have continued to push for further reductions, arguing that petrol prices should move closer to the N800–N900 per litre range recorded before the recent geopolitical crisis.

For now, Nigerians remain caught between falling global oil prices and the commercial realities cited by industry operators, with many hoping that the expected price relief reaches filling stations sooner rather than later.