Human rights lawyer Femi Falana has opposed to the Nigeria National Petroleum Company Limited (NNPCL) decision for unilaterally setting petrol prices, calling it a violation of the Petroleum Industry Act (PIA).
In a statement released on Thursday, Falana argued that NNPCL’s action contravenes Section 205 of the PIA, which stipulates that the prices of petroleum products should be determined by market forces.
Falana noted that while the NNPCL claims the market is deregulated, the company’s recent pricing decisions contradict this assertion.
He pointed to NNPCL’s fixed prices for fuel refined by the Dangote Refinery, stating, “The so-called market forces were not allowed to fix the price,” highlighting that NNPCL had also set prices for both imported and locally refined fuel, contrary to the provisions of the PIA.
On Wednesday, NNPCL outlets in Lagos and Abuja raised petrol prices significantly, with the price per litre in Lagos climbing from ₦855 to ₦998 and in Abuja from ₦897 to ₦1,030.
This unexpected increase triggered panic-buying, leading to long queues at filling stations, while non-NNPCL outlets followed suit, raising their prices as high as ₦1,050 in parts of Lagos.
Falana insisted that these actions are illegal, calling for adherence to the PIA, which mandates that fuel prices be determined by market dynamics rather than the discretion of the NNPCL.
