Refiners Challenge FCCPC's Call for Lower Petrol Prices

Local refiners and petroleum products marketers have criticized the Federal Competition and Consumer Protection Commission (FCCPC) for demanding lower petrol prices, claiming the agency lacks understanding of the downstream market. This response followed the FCCPC's warning that declining international crude oil prices should lead to reduced petrol and diesel prices for consumers.

The FCCPC noted that Brent crude prices had dropped from $115 per barrel in September to below $90, a decline of about 20 percent. Tunji Bello, FCCPC Executive Vice Chairman and Chief Executive Officer, stated that sustained declines in crude prices should result in lower petrol costs for consumers.

However, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), argued that various factors, including exchange rate volatility and operating costs, prevent immediate price reductions. Ibrahim Shehu Yahaya, National Secretary of the Petroleum Dealers Association of Nigeria (PEDAN), added that changes in crude prices take time to reflect in domestic markets due to logistical delays.