Despite Brent crude falling to $70 per barrel, petrol pump prices in Nigeria have remained unchanged, prompting the FCCPC to question why marketers are slow to pass on price reductions to consumers.
Oil prices are falling, but Nigerian pump prices aren’t budging.
Global crude oil prices dropped to the $70 per barrel mark on Thursday morning, with Brent crude slipping from $71 to $70, fuelling fresh expectations that domestic petrol prices could soon see a downward review. Daily Trust reported that despite the decline, the pump price of Premium Motor Spirit (PMS) has remained unchanged across Nigeria.
The drop in crude prices has been linked to slowing global demand, easing geopolitical tensions in some oil-producing regions, and expectations of increased supply from major producers.
With the downstream sector deregulated, global crude movements are expected to influence local refined product prices — prompting consumers to question why pump prices haven’t reflected the recent decline weeks later.
The Federal Ministry of Petroleum and the FCCPC had earlier called for a pump price reduction. FCCPC Executive Vice Chairman, Tunji Bello, clarified that the Commission does not set petroleum prices. “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,” he said.
Bello also noted: “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.”
Marketers have pushed back against sanction threats, hinting at a possible strike. Meanwhile, petrol still sells above N1,200 per litre in Lagos and nearly N1,300 elsewhere.
NEWS NOW:
