Nigeria’s competition regulator has warned fuel marketers that recent reductions in gasoline prices do not reflect the sharp decline in global crude oil prices and pledged to investigate possible consumer exploitation. The Federal Competition and Consumer Protection Commission (FCCPC) said retailers had only made “token” price cuts despite crude prices falling by about 13% following the easing of tensions between the US and Iran. FCCPC Chief Executive Tunji Bello criticized the industry for quickly raising prices when oil becomes more expensive but responding slowly when costs fall. The warning comes as the Dangote Petroleum Refinery, which supplied about 90% of Nigeria’s gasoline demand in May, reduced its wholesale price by roughly 4% to $0.81 per liter. The commission said it would sanction companies found to be profiteering while acknowledging that domestic fuel prices are influenced by several commercial factors.
Bloomberg