Falana: NNPC’s Fuel Price Fixing is Illegal

Nigerian lawyer and human rights activist Femi Falana (SAN) has criticized the Nigeria National Petroleum Company Limited (NNPCL) for its decision to set prices for imported and locally refined fuel, deeming them illegal and void.

In a statement on Thursday, Falana highlighted that this action violates Section 205 of the Petroleum Industry Act, which mandates that fuel prices be determined by market forces.

He noted that on September 5, 2024, NNPCL’s Executive Vice President for Downstream, Mr. Adedapo Segun, stated that the act stipulates that petroleum prices should be set by free market dynamics, not by the government or NNPCL. He also emphasized that exchange rates significantly affect these prices.

However, Falana pointed out that contrary to these claims, NNPCL had imposed prices on fuel refined by the Dangote Refinery last month, ignoring market conditions.

He accused the company of repeatedly violating the law governing its establishment, stating, “Yesterday, NNPCL announced new pump prices for fuel refined by Dangote Refinery, yet again bypassing market forces.”

Additionally, it was reported by NIGERIA NEWS 247 that the Federal Government has indicated it will not intervene in the ongoing pricing dispute between NNPCL and Dangote Refinery regarding the prices of Premium Motor Spirit (petrol).