*Energy consumers commend Nigeria’s Federal Competition and Consumer Protection Commission on issuing the threat of regulatory sanctions on any fuel marketers engaging in price fixing, gouging, and/ or exploitative pricing in the economy
Gbenga Kayode | ConsumerConnect
A broad spectrum of Nigerian energy consumers have commended the Federal Competition and Consumer Protection Commission (FCCPC) for the Commission’s avowed regulatory sanctions on any fuel marketers engaging in price fixing, gouging, and exploitative pricing in the economy.
ConsumerConnect reports the FCCPC, in a statement during the week, had expressed concern over undue exploitation of consumers, following recent findings from surveillance of the downstream petroleum market.
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The Commission said 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.
Between market liberalisation and consumer protection
Speaking on the development, Mr. Tunji Bello, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC, 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.”
Bello, however, 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.
“Competitive markets must work fairly in both directions.”
Underscoring the significance of protecting consumers from exploitation in the domestic oil market, Bello said: “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.”
A vote of confidence on FCCPC for responsibility
Cross-sections of energy consumers and other industry stakeholders decried the reported racketeering by oil marketers.
They emphasised such exploitative practice negates the spirit of transparency, and fair pricing in the deregulated regime like Nigeria’s.
According to consumers, it’s wrong for oil marketers to add salt to the injuries Nigerians bear on account of the huge cost of energy and biting inflation in the land.
Nigerians also expressed support for the imminent action of FCCPC, stating such action would curb the excesses of the fuel marketers in the country.
Energy consumers and stakeholders further urged other regulatory agencies in the downstream petroleum sector to tackle marketers with a view to protecting consumers against exploitation and sharp practices.
Speaking on some marketers’ purported oil racketeering in the Nigerian economy, Mr. Rasheed Adeleke, an energy expert, said fuel marketers’ narrative for keeping the cost of the product high so as to exhaust old stock first was non genuine and inconsiderate, Daily Trust report said.
Adeleke observed that such a narrative has become a recurring decimal for most Nigerian oil marketers, because they find it difficult to lower prices towards minimising the sufferings of consumers.
Rallying around the Commission on sanctioning any erring oil marketers, the energy expert also said: “The threat by the Federal Competition and Consumer Protection Commission to wield the big sticks on the marketers exploring consumers was in order and timely.
It is also noted that FCCPC’s intervention showed the regulator is up and doing to shield Nigerians against sharp practices by the marketers.
“I express my support for the agency as it plans to embark on cleansing the rot associated with over-pricing of fuel and exploitation of Nigerians.
“Nigerians don’t deserve to continue buying at exploitative prices in the face of the reduction in the prices of crude oil,” Adeleke noted.
He, therefore, tasked other regulatory agencies to take a cue from FCCPC towards sanitising the downstream sector of the country’s petroleum industry.
Marketers, outlet owners speak on industry dynamics
In his submission, Billy Gillis-Harry, National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said that market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for Nigerians.
PETROAN’s suggestion came against the backdrop of the decreasing crude price in the international oil market.
Reports have indicated the recent Brent Crude price hovering around $73 per barrel should make oil producers and marketers to adjust oil prices downwards.
For instance, crude prices as of Monday, June 29, stood at $73.12 from the peak of $120 per barrel April this year due to a recent ceasefire accord between the United States (US) and Iran.
The subsequent reopening of the critical and strategic Strait of Hormuz, where 20 percent of total oil supplies pass though was also a key factor in downward price adjustments, according to reports.
Besides, Gillis-Harry stated that increased competition among suppliers should help to moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the West African country.
Competition, the National President of PETROAN maintained, remains one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers in the sector.
Gillis-Harry as well assured Nigerians that a competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities.
As part of extended regulatory interventions to build oil production capacity, and reduce pump price, PETROAN Chief urged Engr. Bayo Ojulari, Group Chief Executive Officer (GCEO) of NNPC Limited, to facilitate talks with the two Chinese firms that have expressed interest in operating the Port Harcourt and Warri Refineries.
According to him, resumption of operations at the Port Harcourt and Warri Refineries under competent private management would enhance supply stability, promote healthy competition, and ultimately lead to more affordable petroleum products for Nigerian consumers.
Gillis-Harry, therefore, advocated a transparent, competitive, and consumer-friendly downstream petroleum sector that delivers fair pricing, energy security, and sustainable economic growth for all Nigerians.
The Eastern Zone of the Independent Petroleum Marketers Association of Nigeria (IPMAN) as well stated that the entry of additional technically competent operators into the country’s oil-refining industry would discourage monopolistic tendencies, improve efficiency, guarantee a more stable supply of petroleum products, and ultimately reflect in lower pump prices for consumers across Nigeria.
Minister directs oil marketers to reduce product prices
In a related development, the Nigerian Government through the Ministry of Petroleum Resources has backed FCCPC’s call on oil marketers to adjust product prices downwards.
Senator Heineken Lokpobiri, Honourable Minister of State for Petroleum (Oil), stated Monday, June 29, 2026, in Abuja, FCT, while speaking at the 2026 General Counsel and Legal Advisers’ Forum.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) organised the forum.
Lokpobiri restated that fuel pricing remains subject to market forces under the deregulated downstream petroleum sector in the West African country.
The Minister’s directive was also sequel to latest consumers and stakeholders’ criticism of alleged profiteering action by marketers in respect of the obvious drop in crude prices in the international oil market.