By Okeke Eunice
Nigerian lawyer and human rights activist, Femi Falana (SAN), has condemned the Nigeria National Petroleum Company’s decision to set prices for both imported and locally refined fuel, stating that the action is illegal, null, and void.
In a statement on Thursday, Falana explained that this move violates section 205 of the Petroleum Industry Act.
“The NNPCL’s decision to control the prices of imported and locally refined fuel is unlawful and void, as it breaches the provisions of section 205 of the Petroleum Industry Act, which states that the prices of petroleum products should be determined by market forces,” he stated.
He further stated, “On September 5, 2024, Mr. Adedapo Segun, the Executive Vice President of Downstream NNPC Ltd, clarified that Section 205 of the PIA, which established NNPC Limited, mandates that petroleum prices in Nigeria are set by free market forces.”
He stated that with the deregulation of the market, petrol prices are now driven by market forces instead of being controlled by the government or NNPC Ltd. He also noted that the exchange rate has a major impact on determining these prices.
However, contrary to the widely publicized statement, NNPCL set the price of fuel produced by Dangote Refinery and Petrochemical Company Limited last month, disregarding market forces that were supposed to determine the price.
He also accused the company of repeatedly violating the laws that govern its operations.
Yesterday, the Nigeria National Petroleum Company Limited revealed new pump prices for fuel produced by the Dangote Refinery and Petrochemical Company. Yet again, market forces were not permitted to determine these prices.
It should be noted that Honorable Fm previously reported that the Federal Government announced it would not intervene in the ongoing disagreement between NNPC Limited and Dangote Refinery regarding the pump prices of Premium Motor Spirit (petrol).