Crude Price Crash: FCCPC Accuses Oil Marketers Of Exploiting Nigerians

…Threatens Sanctions Over Delayed Petrol Price Cuts

The Federal Competition and Consumer Protection Commission (FCCPC) has accused oil marketers of failing to pass on the benefits of falling global crude oil prices to Nigerian consumers, warning that businesses found exploiting motorists through unjustified fuel pricing could face sanctions.

The Commission in a statement issued on Sunday said findings from its ongoing surveillance of the downstream petroleum sector showed that reductions in gantry and pump prices have been insignificant despite the sharp decline in international crude oil prices.

Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the Commission was concerned that marketers were quick to increase fuel prices whenever crude oil prices rose but had been slow to reduce them now that global prices had fallen substantially.

According to him, while the downstream petroleum sector operates under a deregulated pricing regime, market liberalisation does not give operators the freedom to engage in exploitative or anti-competitive practices.

“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.

He added, “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.”

According to the Commission, crude oil prices have dropped sharply in recent weeks following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, easing supply concerns that had driven prices higher earlier in the year.

Global crude prices, which peaked at about $120 per barrel in April, have reportedly fallen to about $73 per barrel, returning to levels last seen in February.

The earlier surge in crude prices prompted local refiners and marketers to raise petrol prices rapidly, with pump prices climbing to between N1,350 and N1,500 per litre, while diesel sold for as much as N2,000 per litre during the height of tensions in the Gulf between April and May.

However, despite the significant drop in crude prices, the FCCPC noted that petrol is still selling for an average of N1,200 per litre across the country, while some local refiners continue to maintain gantry prices of between N1,025 and N1,075 per litre.

The Commission acknowledged that domestic fuel prices are influenced by several commercial factors, including refining costs, foreign exchange fluctuations, logistics, financing and distribution expenses.

Nevertheless, it maintained that the magnitude of the decline in crude oil prices should have translated into more noticeable relief for consumers.

Bello warned that the Commission would not hesitate to investigate and sanction any operator found engaging in conduct that undermines competition or exploits consumers.

“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.

He also urged Nigerians to report suspected cases of anti-competitive conduct, misleading pricing practices and other unfair market behaviour through the Commission’s established complaint channels.

The FCCPC’s warning comes amid mounting public concern over the pace at which fuel prices respond to movements in global crude oil prices, with many consumers questioning why pump prices rise almost immediately during periods of international price increases but decline only marginally when crude prices fall.

The FCCPC accusation is coming barely five days after THE WHISTLER‘s analysis had raised questions over why petrol prices in Nigeria remain around N1,200 per litre despite the easing of pressures that had pushed up energy costs during the conflict.

The three-month conflict, which began on February 28, 2026 sent shockwaves through global energy markets as traders feared a blockade of the strait and a possible escalation involving Gulf producers.

The uncertainty pushed crude prices sharply higher, with Brent crude climbing from around $68 per barrel before the crisis to above $120 and peaking near $126 per barrel in April.

The rise translated into higher prices for refined products worldwide and put upward pressure on petrol prices in importing countries, including Nigeria.

Before the outbreak of the conflict, petrol sold for between N830 and N900 per litre across much of Nigeria.

As crude prices surged by approximately 85 per cent, pump prices climbed to around N1,360 per litre, representing an increase of about 54 per cent.

However, while crude oil has surrendered much of its war-induced gains, domestic petrol prices have been far slower to follow suit.

Although the easing of tensions prompted Dangote Petroleum Refinery to slash its ex-depot price by N125 per litre from N1,250 to N1,125, retail prices have remained around ₦1,200 per litre in many parts of Nigeria.

The refinery attributed the reduction to improved market fundamentals following the de-escalation of tensions in the Middle East.

But based on THE WHISTLER analysis, when crude prices climbed from $68 to $126 per barrel, an increase of about 85 per cent, petrol prices rose from roughly N850 to N1,300 per litre, a rise of about 53 per cent.

Using the same transmission mechanism, the current decline in crude prices of more than 41 per cent should ordinarily place petrol prices between ₦900 and ₦1,000 per litre.

A simple proportional calculation would imply an even lower price of below ₦800 per litre.

However, analysts caution that crude oil accounts for only part of the final cost of petrol.

Findings by THE WHISTLER further revealed that exchange rates, shipping charges, storage costs, transportation expenses, dealer margins and taxes all influence the retail price.

Even after accounting for these variables, energy experts say PMS should realistically retail around ₦1,000 per litre.

The issue is not peculiar to Nigeria. In the United States, President Donald Trump has ordered the Department of Justice to investigate major oil companies over allegations that they are failing to reduce pump prices in line with falling crude oil costs.

In a post on Truth Social on Wednesday, Trump accused oil companies of exploiting consumers.

“The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged’,” Trump wrote.

“I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!” he added.