Federal Competition and Consumer Protection Commission (FCCPC) has warned petrol refiners, depot operators, marketers and filling station owners that they could face regulatory sanctions if investigations uncover evidence of consumer exploitation in Nigeria’s downstream petroleum sector.
Gatekeepers News reports that the warning comes as the World Bank’s latest Global Gas Flaring Tracker Report revealed that global gas flaring reached a six-year high of 167 billion cubic metres (bcm) in 2025, with Nigeria remaining among the world’s leading gas-flaring countries.
The FCCPC said preliminary findings from its ongoing market surveillance indicate that reductions in petrol prices have been minimal despite the significant decline in global crude oil prices in recent weeks.
Executive Vice Chairman and Chief Executive Officer of the commission, Tunji Bello, expressed concern that consumers were yet to enjoy meaningful relief at the pumps.
“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,” Bello said.
He explained that although petrol prices are determined by market forces under Nigeria’s deregulated downstream sector, the FCCPC remains empowered under the Federal Competition and Consumer Protection Act 2018 to prevent anti-competitive conduct and protect consumers.
Bello stressed that market liberalisation does not excuse businesses from complying with competition laws.
“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 price manipulation, anti-competitive practices and other unfair market behaviour through the commission’s complaint channels.
Global crude oil prices have fallen sharply following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz. Brent crude, which had climbed to about $120 per barrel in April amid geopolitical tensions, has since dropped to about $72 per barrel.
Despite some refiners lowering gantry prices to between N1,025 and N1,075 per litre, petrol continues to retail for around N1,200 per litre across many parts of the country.
The FCCPC acknowledged that domestic fuel pricing is also influenced by factors such as exchange rates, logistics, financing costs, refining expenses and distribution costs. However, it maintained that lower international crude prices should have resulted in more noticeable savings for consumers.
Industry experts, however, argued that crude oil prices alone do not determine pump prices.
Professor of Economics, Wumi Iledare, said although consumers were justified in expecting lower fuel prices, petrol pricing often reflects what economists describe as “asymmetric price transmission,” where price increases are passed on more quickly than price reductions.
Similarly, Partner at Kreston Pedabo, Olufemi Idowu, noted that domestic operational costs continue to exert upward pressure on retail fuel prices despite declining crude prices.
Meanwhile, Chairman of the Board of Trustees of the Community Development Committees of Niger Delta Oil and Gas Producing Areas, Joseph Ambakederimo, said the discussion should also focus on increasing Nigeria’s crude oil production.
According to him, the country’s current production of about 1.5 million barrels per day remains inadequate for an economy of Nigeria’s size despite reports that output has recently exceeded Nigeria’s OPEC quota.
In a separate development, the World Bank’s 2026 Global Gas Flaring Tracker Report revealed that global gas flaring rose by 10 billion cubic metres in 2025 to 167 billion cubic metres, marking the third consecutive annual increase and the highest level recorded in six years.
The report estimated that gas flared worldwide last year was worth approximately $54 billion—enough to meet Africa’s annual gas demand.
The World Bank described continued gas flaring as the waste of a valuable energy resource that could improve electricity access, strengthen energy security and support economic development.
It also noted that global oil production increased by only 3.3 per cent in 2025, while gas flaring grew at nearly twice that pace, indicating inadequate investment in gas capture infrastructure.
Nigeria was listed among nine countries responsible for 83 per cent of global gas flaring in 2025 despite accounting for only 46 per cent of global oil production. The other countries identified were Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria and the United States.
