Nigerian lawyer and human rights activist Femi Falana (SAN) has criticized the Nigerian National Petroleum Company Limited (NNPCL) for its decision to set prices for both imported and locally refined fuel, calling it illegal and void.
In a statement released on Thursday, Falana argued that this action violates Section 205 of the Petroleum Industry Act, which mandates that fuel prices should be determined by market forces. He stated, “The NNPCL’s attempts to fix fuel prices are null and void as they contradict the provisions of the Petroleum Industry Act that require prices to be influenced by market dynamics.”
Falana referenced remarks made by Mr. Adedapo Segun, Executive Vice President of NNPC’s Downstream sector, on September 5, 2024. Segun had emphasized that the Act deregulated petroleum pricing, indicating that it is now dictated by market forces, not by government or NNPCL. He noted that the exchange rate significantly impacts these prices.
However, Falana pointed out that despite these claims, NNPCL recently set prices for fuel refined at the Dangote Refinery, indicating that genuine market forces were not permitted to influence pricing.
He accused the NNPCL of repeatedly violating the law that governs its operations. “Just yesterday, the NNPCL announced new fuel prices for products from the Dangote Refinery, yet again disregarding the principles of market regulation,” he asserted.
This comes amid reports that the Federal Government will not intervene in the ongoing pricing dispute between NNPCL and the Dangote Refinery regarding the cost of Premium Motor Spirit (petrol).