Femi Falana (SAN), a prominent Nigerian lawyer and human rights activist, has condemned the Nigeria National Petroleum Company Limited (NNPCL) for fixing the prices of both imported and locally refined fuel, deeming these actions illegal and void.
In a statement released on Thursday, Falana argued that this decision violates Section 205 of the Petroleum Industry Act (PIA), which mandates that fuel prices should be determined by market forces. He stated, “The NNPCL’s decision to set prices for imported and locally refined fuel is illegal, null, and void, as it contradicts the provisions of Section 205 of the Petroleum Industry Act, which specifies that petroleum product prices must be determined by market forces.”
Falana referred to comments made by Mr. Adedapo Segun, Executive Vice President of Downstream NNPC Ltd., on September 5, 2024. Segun had stated that the PIA, which established NNPC Limited, specifies that petroleum prices are to be set by free market forces in Nigeria. He emphasized that “the market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. The exchange rate also significantly influences these prices.”
However, Falana pointed out that contrary to this assertion, NNPCL fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company last month, disregarding the market forces it had claimed to uphold.
He criticized NNPCL for repeatedly violating the law that governs its operations. Additionally, it was noted that PUNCH Online previously reported that the Federal Government had stated it would not intervene in the ongoing dispute between NNPCL and Dangote Refinery regarding the pricing of Premium Motor Spirit (petrol).
Written By: Praise Inalegwu