The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over what it termed “undue exploitation of consumers” from players in the downstream petroleum market.

In a statement Sunday by its Director, Corporate Affairs, Ondaje Ijagwu, the FCCPC stated that a review of the gantry prices of local refiners, marketers, depot operators and retail outlet operators revealed token reductions in prices that are not commensurate with the steep fall in crude prices in the global market.

Reacting, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, stated, “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.”

The Commission noted that following a ceasefire accord between the U.S. and Iran two weeks ago and the reopening of the Straits of Hormuz, crude prices have fallen to $73, a sharp drop from the peak of $120 per barrel in April.

It added that across the global market, crude prices have since returned to the February levels; however, in Nigeria, there has been no significant drop in prices.

The statement added that, “the earlier spike in crude prices saw local refiners and marketers raising pump prices swiftly across the country, with petrol price climbing to between N1,350 to N1,500 and diesel selling N2,000 as hostilities intensified in the gulf between April and May.

“In February, common PMS (petrol) averaged between N800 and N900.

“Across the country today, PMS is still sold at an average of N1,200 while some local refiners fixed between N1,025 and N1,075 as their gantry prices.

Bello, who spoke on market liberalisation, said it does not absolve businesses of their responsibility to compete fairly or deny consumers the right to fair pricing.

“Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment.

“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.”