The Federal Competition and Consumer Protection Commission (FCCPC), yesterday warned oil marketers and retail outlets against arbitrary hoarding and increases in the pump prices of petroleum products, saying it will not hesitate to sanction violators.
The Commission insisted that there is no reason to warrant the sudden increase in pump prices of fuels and accompanying long queues that followed Monday’s announcement of the removal of subsidy by President Bola Tinubu.
The Executive Vice Chairman/Chief Executive Officer, FCCPC, Babatunde Irukera, in a statement, said: “Product marketers have been informed that any infringement which distorts the market or enables others to exploit consumers and perpetuate inconvenience will be subject to the aggravated and highest spectrum of penalties where evidence supports violation.
“Organised marketing or trading associations/platforms such as MOMAN and the Independent Petroleum Marketers Association of Nigeria (IPMAN), are in particular invited to note this and their collective and individual possible exposure in the event of evidence-supported violations.”
He informed that the Commission is in a joint taskforce with the Lagos State Consumer Protection Agency (LASCOPA); the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); and the Major Oil Marketers Association of Nigeria (MOMAN), is ready to apprehend offenders of the supply chain.
Irukera said: “The outcome of these engagements between the top-level Executives of the Commission and these other relevant entities, as well as key operatives, demonstrates that, there is no operational basis or sufficiently diminished/acute reduction in product availability at both supply and retail points in the value chain to justify the hardship and constraints otherwise emerging.”
Besides this emerging hardship on motorists and other consumers and disruptions in commerce, and traffic among other difficulties, unintended consequences and financial constraints for citizens, he noted that storing fuels due to panic-buying under regulated manners constitutes danger and risk of significant losses, even fatality.
He noted that the NMDPRA and MOMAN already gave an assurance of sufficient levels of supply for national consumption, and as such no need for panic-buying.
…there is no operational basis or sufficiently diminished/acute reduction in product availability at both supply and retail points in the value chain to justify the hardship and constraints otherwise emerging.
Tinubu meets Emefiele, Kyari
The FCCPC’s warning came ahead of a meeting between the President and the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, the Group Chief Executive Officer (GCEO), NNPC Limited, Mele Kyari, and others, presumably to discuss the current artificial fuel shortages.
This was even as Kyari assured that the fuel queues will be short-lived, as the NNPC was working with other federal government agencies to resolve the issues and end the long queue at filling stations.
Speaking with State House Correspondents, Kyari said “I know all of us must have seen the fuel queues in filling stations across the country.
“It is very understandable that whenever announcements to changes to prices of petroleum happen, both buyers and marketers will like assurance of what exactly this means and typically, consumers will rush to the filling stations to fill their tanks and that is why you are seeing these queues.
“And also for marketers, they would like to see exactly what this means in terms of how we are going to sell the products if subsidy on PMS is removed?
“And the combination of the two is what you are seeing – the obvious dislocation on distribution and we believe that this will go away very quickly.
“And as you may be aware, PIB which was accented in 2021 and became an Act, made it clear that the price of petroleum must be priced at the market.”
Similarly, the Authority Chief Executive, NMDPRA, Farouk Ahmed, said the pronouncement by Tinubu was in tandem with the law.
He said prospective importers who meet the criteria would be licensed to import fuel to ease pressure on NNPC, and that efforts are on to guard against the exploitation of consumers.
“We also understand the provision of the law that provided for the removal of subsidy from February 2021; therefore, the president’s pronouncement yesterday was in line with the law.
“However, what I can assure is that we are ready to licence anybody who wants to import because NNPC has always been a supplier of PMS.
“However, with the removal of subsidy as pronounced by the president that opened the floodgate for any intending marketer that wants to import PMS, we are ready to issue licences for them to do; at least that will open up competition and of course there will be less burden on NNPC.
“I also want to assure the general public that NMDPRA and the Federal Competition and Consumer Protection Commission will make sure that consumers are not taken advantage of,” he said.
I also want to assure the general public that NMDPRA and the Federal Competition and Consumer Protection Commission will make sure that consumers are not taken advantage of.
Marketers laud clarity of policy
Meanwhile, MOMAN and the Depot and Petroleum Marketers Association of Nigeria (DAPPMAN) in a joint statement lauded the Federal Government’s decision to phase-out the petrol subsidy regime, saying it “signals a courageous and pragmatic shift in our nation’s economic trajectory.”
The marketers reiterated that based on the assurances given by the NNPCL and the NMDPRA, “there is no cause for alarm. We strongly urge Nigerians to avoid panic buying or stockpiling of petrol.”
They added that “This behaviour not only creates artificial scarcity but also poses a significant safety hazard. The NNPCL has assured Nigerians of adequate fuel supply and the NMDPRA is working closely with stakeholders to ensure a seamless transition.”
They assured that distribution channels remain uninterrupted, while fuels are readily available at all filling stations across the country.
“The decision to phase out this fuel subsidy regime is not merely a fiscal reform; it is a significant stride toward social justice. We are heartened that the administration plans to redirect these substantial funds towards essential public goods such as infrastructure, education, and healthcare. These investments symbolize our shared future, promising considerable, long-term benefits for all Nigerians,” they added.
However, such entreaties have not trickled down to the retail outlets, which have witnessed resurgence on unwieldy queues, with price of premium motor spirit (PMS) popularly called petrol selling for between N350 and N700 per litre depending on the outlet and location.
