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Nigerian Activist Challenges NNPC’s Fuel Pricing Decisions

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1 month ago

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Nigerian National Petroleum Company

Femi Falana, a prominent Nigerian lawyer and human rights activist, has criticized the decisions of the Nigerian National Petroleum Company Limited (NNPCL) for unilaterally setting fuel prices. Falana described these actions as illegal, citing violations of the Petroleum Industry Act (PIA), specifically section 205, which mandates that fuel prices should be determined by market forces.

In a statement released on Thursday, Falana asserted that the NNPCL’s decision to fix both imported and locally refined fuel prices contravenes the PIA. “The decisions of the NNPCL to fix the prices are illegal, nullity, and void as they contravene section 205 of the Petroleum Industry Act which stipulates that prices of petroleum products shall be determined by market forces,” he stated.

Falana referenced a statement from September 5, 2024, by Mr. Adedapo Segun, Executive Vice President of Downstream NNPC Ltd., who emphasized that petroleum prices should be governed by free market dynamics. “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.,” Falana commented. He further highlighted the impact of exchange rates on fuel pricing.

Despite these assertions, Falana pointed out that the NNPCL had overridden market determinants by fixing the price of fuel produced by the Dangote Refinery and Petrochemical Company Limited. “But contrary to the well-publicized statement, the NNPCL fixed the price of fuel refined by the Dangote Refinery last month,” he highlighted, noting a repeated pattern of non-compliance with the law.

Recent developments saw the NNPCL announce new pump prices for fuel refined by the Dangote Refinery, again without allowing market forces to determine them, Falana alleged. This issue has caused tension between the NNPC and the Dangote Refinery, a conflict that the Federal Government has reportedly chosen not to intervene in, as previously noted by Punch Online.

Rachel Adams

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