NNPC fixing fuel prices is illegal – Femi Falana

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

Falana in a statement 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.