Falana Decries NNPC Fuel Price Fixing as Illegal and Unconstitutional
Nigerian lawyer and human rights activist Femi Falana (SAN) has sharply criticized the Nigerian National Petroleum Company Limited (NNPCL) for its recent decisions to fix the prices of both imported and locally refined fuel, labeling these actions as illegal and void.
In a statement issued on Thursday, October 10, Falana emphasized that the NNPCL’s pricing strategies violate Section 205 of the Petroleum Industry Act (PIA), which mandates that market forces should determine petroleum prices.
“The decisions of the NNPCL to fix the prices of imported fuel and locally refined fuel are illegal, null, and void,” he asserted, highlighting the legal implications of the company’s actions.
Falana referenced comments made by Mr. Adedapo Segun, Executive Vice President of Downstream NNPC Ltd, who recently clarified that the PIA allows for market-determined pricing.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd,” Segun noted. He further explained that fluctuations in the exchange rate significantly impact these prices.
Despite this clarification, Falana pointed out a contradiction: the NNPCL had previously set prices for fuel refined by the Dangote Refinery, undermining the principle of market-driven pricing. “Once again, the so-called market forces were not allowed to fix the new prices of fuel,” he declared, accusing the company of repeated violations of the law.
The controversy surrounding fuel pricing is compounded by the Federal Government’s stance, which has stated it will not intervene in the ongoing dispute between NNPCL and Dangote Refinery over the pricing of Premium Motor Spirit (petrol).
