Falana Questions NNPC’s Actions on Fuel Pricing
Human rights lawyer, Femi Falana (SAN), has declared the Nigerian National Petroleum Company Limited’s (NNPCL) decision to set fuel prices as illegal. Falana cites the Petroleum Industry Act (PIA), mandating that market forces, not NNPCL, should dictate petroleum prices. He argues that their actions violate Section 205 of the PIA, which clearly outlines how pricing must be determined in the industry.
Petroleum Industry Act and NNPC’s Violation
Falana explains that the PIA allows market forces to influence fuel prices. Mr Adedapo Segun, the Executive Vice President of NNPC’s Downstream operations, reaffirmed this principle in a statement on September 5, 2024. Segun had explained that deregulation now allows market forces, including exchange rates, to play a key role in determining fuel prices in Nigeria.
Contradictions in Fuel Pricing at Dangote Refinery
Falana further pointed out contradictions in NNPC’s fuel pricing approach, particularly highlighting the case of Dangote Refinery. NNPC recently fixed the prices for fuel refined by the Dangote Refinery, despite claiming that market forces set the prices, bypassing the free market mechanism that should have been applied.
Legal Implications and Consequences
The lawyer accused NNPC of serially violating the very laws that established it, saying that such actions undermine the integrity of the PIA. According to him, the continual fixing of prices contradicts the government’s stance on deregulation and transparency in the petroleum sector.
Government’s Stance on NNPC’s Pricing Conflict
The Federal Government has opted not to intervene in the ongoing dispute between NNPC and Dangote Refinery over fuel pricing. This inaction further deepens the controversy, as the government remains silent on NNPC’s actions, despite the publicized illegality.
Future of Fuel Pricing in Nigeria
As the controversy continues, many Nigerians are questioning the future of fuel pricing and market deregulation. Falana’s call for adherence to the PIA could set the stage for potential legal challenges, forcing NNPC to rethink its pricing policies.
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