The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the slow reduction in petrol prices despite the sharp decline in global crude oil prices, warning of possible consumer exploitation in Nigeria’s downstream petroleum sector.

In a statement issued on Sunday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said its ongoing market surveillance showed that local refiners, depot operators, marketers and filling station owners had implemented only marginal reductions in fuel prices, despite the significant fall in international crude oil prices.

According to the Commission, a review of prevailing gantry and retail prices indicated that consumers were yet to fully benefit from the easing in global oil prices.

“The Federal Competition and Consumer Protection Commission has expressed concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers,” the statement said.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, noted that while operators in the downstream sector often increase pump prices quickly whenever crude oil prices rise, they appear reluctant to reduce prices when global crude prices decline.

“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,” Bello said.

“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’s concerns come as global crude oil prices have dropped to about 73 dollars per barrel, following the easing of tensions in the Middle East and the reopening of the Strait of Hormuz.

Although the FCCPC acknowledged that domestic fuel prices are influenced by factors such as foreign exchange rates, logistics, financing, refining and distribution costs, it maintained that market competition should have resulted in more substantial reductions in pump prices.

Bello warned that the Commission would investigate any credible evidence of anti-competitive conduct or consumer exploitation.

“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,” he said.

The FCCPC also urged Nigerians to report suspected cases of price manipulation, anti-competitive practices and other unfair market conduct through its official complaint channels.