Renowned Nigerian lawyer and human rights advocate, Femi Falana (SAN), has condemned the decision of the Nigerian National Petroleum Company Limited (NNPCL) to set prices for both imported and locally refined fuel, labeling the actions as illegal, null, and void.
In a statement released on Thursday, Falana argued that NNPCL’s decision violates Section 205 of the Petroleum Industry Act (PIA).
“The decisions of NNPCL to fix the prices of imported and locally refined fuel are illegal, null, and void as they contravene Section 205 of the Petroleum Industry Act, which mandates that petroleum product prices be determined by market forces,” Falana stated.
He further referenced a September 5, 2024, statement by Mr. Adedapo Segun, the Executive Vice President of NNPC’s Downstream Division. Segun had emphasized that Section 205 of the PIA, which established NNPC Limited, stipulates that fuel prices in Nigeria should be determined by free market forces.
“According to him, ‘the market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPCL. Additionally, the exchange rate plays a significant role in influencing these prices,’” Falana noted.
However, Falana accused NNPCL of contradicting this claim, stating that the company recently fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company Limited. “The so-called market forces were not allowed to determine the price,” he said.
He further criticized NNPCL for repeated violations of the law that governs its operations.
“Just yesterday, NNPCL announced new pump prices for fuel refined by the Dangote Refinery, again bypassing the market forces that should have set the price,” Falana said.
It should be recalled that the Federal Government had earlier indicated that it would not intervene in the ongoing dispute between NNPCL and Dangote Refinery over the pump prices of Premium Motor Spirit (PMS), commonly known as petrol.
