Renowned Nigerian lawyer and human rights advocate, Femi Falana (SAN), has strongly criticized the Nigeria National Petroleum Company Limited (NNPCL) for setting fuel prices, calling the move illegal and a violation of the Petroleum Industry Act (PIA).
According to Falana, the NNPCL’s decision to fix prices for both imported and locally refined fuel goes against the legal provisions established in section 205 of the PIA.
In a public statement made on Thursday, Falana explained that section 205 of the Petroleum Industry Act clearly stipulates that the pricing of petroleum products should be determined by market forces.
This means that fuel prices in Nigeria should fluctuate based on market demand and supply, not through direct intervention by the NNPC or any other government body.
“The decisions of the NNPCL to fix the prices of imported fuel and locally refined fuel are illegal, nullity and void as they contravene the provisions of section 205 of the Petroleum Industry Act which stipulates that the prices of petroleum products shall be determined by market forces,” he said
He added, “On September 5, 2024, the Executive Vice president of Downstream NNPC Ltd, Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Limited stipulates that petroleum prices are determined by free market forces in Nigeria.
“According to him, ‘the market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.
“But contrary to the well-publicized statement, the NNPCL fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company Limited last month. The so-called market forces were not allowed to fix the price.”
“Yesterday, the Nigeria National Petroleum Company Limited announced new pump prices of fuel refined by the Dangote Refinery and Petrochemical Company. Once again, the so-called market forces were not allowed to fix the new prices of fuel.
