Fixing of fuel prices by NNPC illegal – Falana

A Nigerian lawyer and human rights activist, Femi Falana (SAN), has knocked the decisions of Nigeria National Petroleum Company to fix prices of imported fuel and locally refined fuel, which are illegal, null, and void.

In a statement on Thursday, Falana said the move contravenes the provisions of section 205 of the Petroleum Industry Act.

“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.”

He accused the company of serial violation of the law setting it up.

“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.

Recall that PUNCH Online had reported that the Federal Government had stated that it would not interfere in the ongoing dispute between the Nigerian National Petroleum Company Limited and Dangote Refinery over the pump prices of Premium Motor Spirit (petrol).