A recent statement from renowned Nigerian lawyer and human rights activist, Femi Falana (SAN), highlights the illegality of the Nigeria National Petroleum Company Limited’s (NNPCL) decision to set prices for both imported and locally refined fuel. Falana asserts that these actions are null and void, violating the stipulations of the Petroleum Industry Act (PIA).

Falana emphasized on Thursday that the NNPCL’s pricing strategy contravenes Section 205 of the PIA, which clearly states that petroleum prices should be dictated by market forces. He quoted Mr. Adedapo Segun, the Executive Vice President of Downstream NNPC Ltd, who previously affirmed that the deregulation of the market means that fuel prices are no longer determined by government mandates or NNPCL itself.

According to Falana, “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.”

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However, he pointed out a significant discrepancy: “Despite the well-publicized statements, the NNPCL fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company last month. The so-called market forces were not allowed to set the price.”

Falana accused the NNPCL of repeatedly breaching the legal framework that governs its operations. He reiterated, “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 determine the new prices.”

Furthermore, reports indicate that the Federal Government has chosen not to intervene in the ongoing dispute between the NNPCL and Dangote Refinery regarding the pricing of Premium Motor Spirit (petrol).