A prominent Nigerian lawyer and human rights activist has expressed strong criticism of the Nigerian National Petroleum Company’s (NNPCL) recent decisions regarding fuel pricing, deeming them illegal and contradictory to the Petroleum Industry Act.
In a statement, the activist highlighted that the NNPCL’s actions violate Section 205 of the Petroleum Industry Act, which mandates that petroleum product prices be determined by market forces. “The decisions of the NNPCL to fix the prices of imported fuel and locally refined fuel are illegal and void,” he stated.
He referenced comments made by NNPC Ltd’s Executive Vice President of Downstream, asserting that deregulation means fuel prices are now influenced by market dynamics rather than government intervention. The official also noted that exchange rates significantly affect these prices.
Despite these claims, the activist pointed out that NNPCL imposed fixed prices on fuel refined by the Dangote Refinery, contrary to the assertion of market determination. He accused the NNPCL of repeatedly breaching the legal framework that governs its operations.
Recently, the NNPCL announced new pump prices for fuel refined by Dangote, once again asserting control over pricing without allowing market mechanisms to dictate the costs. This ongoing situation has garnered attention, as the Federal Government has stated it will not intervene in the disputes over fuel pricing between the NNPCL and Dangote Refinery.
