NNPCL Lacks Legal Mandate To Control Fuel Prices, Falana Asserts

NNPCL Lacks Legal Mandate To Control Fuel Prices, Falana AssertsSenior Advocate of Nigeria (SAN), Femi Falana, has criticized the Nigerian National Petroleum Company Limited (NNPCL) for setting fuel prices, calling the action illegal and void. According to Naija News, Falana issued a statement on Thursday in response to remarks made on September 5, 2024, by NNPC Ltd’s Executive Vice President of Downstream, Adedapo Segun. Segun had explained that under Section 205 of the Petroleum Industry Act (PIA), NNPC operates in a deregulated market where fuel prices are determined by free market forces.....KINDLY READ THE FULL STORY HERE▶

Segun stated, “The market has been deregulated, meaning petrol prices are now set by market forces rather than the government or NNPC Ltd. Additionally, the exchange rate significantly influences these prices.”

However, Falana objected to this, arguing that NNPCL does not have the legal authority to fix petrol prices in Nigeria. He pointed out that, despite Segun’s claims, NNPCL set the price of fuel refined by Dangote Refinery and Petrochemical Company Limited the previous month without allowing market forces to play their role.

Falana further noted that on Wednesday, October 9, 2024, NNPCL once again bypassed market dynamics by announcing new pump prices for fuel refined by Dangote Refinery. According to him, these actions violate Section 205 of the PIA, which requires that petroleum product prices be determined by market forces.

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