NNPC lacks legal authority to fix fuel price, Falana cites court judgment
By Jeph Ajobaju, Chief Copy Editor
Human rights activist Femi Falana, SAN wants the Nigerian National Petroleum Corporation (NNPC) to stop fixing the prices of petroleum products because it has no legal authority to do so.
Falana, who chairs the Alliance on Surviving COVID-19 and Beyond (ASCAB), says since fuel subsidy has been removed and the sector is now liberalised, the NNPC should be restrained from further fixing the prices.
“In his inauguration address delivered on May 29, 2023, President Bola Tinubu announced that his administration will govern the country under the rule of law,” Falana reiterated in a statement.
“The commitment implies that the actions of the government and its agencies will be carried out under the law. The people of Nigeria were taken aback … when the Nigeria National Petroleum Corporation Limited increased the pump price of petrol from N500 to N617.
“After increasing the price, the NNPCL turned round to claim that it was fixed by market forces. It is submitted that the increase of the pump price of petrol by the NNPCL is an affront to the rule of law on the grounds that it is illegal in every material in particular.”
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Court judgment on fuel price fixing
“In Bamidele Aturu v Minister of Petroleum Resources (Suit No FHC/ABJ/CS/591/2009), Plaintiff challenged the plan of the Federal Government to deregulate the downstream sector of the petroleum industry and allow market forces to determine the prices of petroleum products,” Falana added, per Vanguard.
“In a landmark judgment delivered on March 19, 2013, the Federal High Court, presided over by Adamu Bello J. (as he then was) held that by the combined effect of the Petroleum Act, Price Control Act and the Constitution, the Federal Government ‘must always fix the price of petroleum products sold across Nigeria.’
“Specifically, the reliefs granted by Federal High Court include the following:
“A declaration that the policy decision of the Defendants to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria is unlawful, illegal, null, void and of no effect whatsoever being in vicious violation of the mandatory provision of section 6 of the Petroleum Act, cap P.10, Laws of the Federation of Nigeria, 2004.
“A declaration that the policy decision of the Defendants to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria is unlawful, illegal, null, void and of no effect whatsoever being in flagrant violation of the mandatory provision of section 4 of the Price Control Act, cap P28, Laws of the Federation of Nigeria, 2004.’’
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