Falana: NNPC’s Fuel Price Fixing is Illegal

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

In a statement released on Thursday, Falana noted that this move violates 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.