While Fuel marketers are, under Nigerian law, legally permitted to determine their own prices within the deregulated framework. However, in practice, some marketers undermine this freedom by engaging in coordinated pricing behavior—agreeing on uniform rates within a specific region, manipulating discount structures to align their offerings, or setting identical pump prices across supposedly competing outlets. This practice, known as price-fixing, severely distorts market fairness by eliminating the benefits of consumer choice and suppressing price-based competition.

Section 107 of the Federal Competition and Consumer Protection Act (FCCPA) makes such conduct illegal, stating unequivocally that any form of coordinated price-setting, whether through formal agreements or informal understandings, is a violation of competition law. Yet, despite this legal clarity, real-world enforcement has remained sporadic, with very few prosecutions or regulatory crackdowns on price-fixing activities in the sector.

Experts suggest a two-pronged strategy to combat this: First, the deployment of advanced market intelligence systems capable of tracking and analyzing pricing trends in real-time to flag anomalies and potential collusion. Second, strengthening whistleblower protection laws and incentives to empower insiders to report illicit price coordination without fear of retaliation. Only through proactive detection, decisive enforcement, and public awareness can Nigeria dismantle the cartels that quietly rob consumers of the benefits of a truly competitive fuel market.