The Federal Government says it is engaging petroleum marketers and industry regulators to ensure Nigerians benefit from declining global crude oil prices through lower fuel costs.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while responding to questions from journalists after the Federal Executive Council (FEC) meeting in Abuja.
Oyedele said discussions are ongoing with operators in the downstream petroleum sector on how reductions in international crude oil prices should be reflected in domestic pump prices.
According to him, marketers often increase fuel prices almost immediately when crude oil prices rise, citing higher replacement costs, but are usually slower to reduce prices when global prices decline because they still have existing stock purchased at higher rates.
“We are engaging with marketers and regulators to ensure there is fairness in the market while also recognising the commercial realities operators face,” he said.
The minister added that the Federal Competition and Consumer Protection Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority are already addressing the issue within the framework of the Petroleum Industry Act.
The development follows concerns raised by the FCCPC that recent declines in global crude oil prices have not translated into corresponding reductions in fuel prices across the country.
The consumer protection agency warned that although it does not regulate petroleum prices, it would not hesitate to sanction businesses found engaging in exploitative pricing or other anti-competitive practices in the deregulated downstream petroleum market.