The President of the Senate, Godswill Akpabio, stated that the Senate is prepared to intervene in the recent increase in petrol prices set by the Nigerian National Petroleum Company Limited (NNPCL) if necessary.
In a response to questions after a plenary session, Akpabio noted that he has not yet conducted a comprehensive assessment of the situation, but he believes the price hike is a result of deregulation.
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“It simply means that you are going to stop the idea of subsidy to make sure that the monies are used for other things. So I don’t expect any increase in pump price,” he said
He also expressed his expectation that market forces will dictate prices, noting that the NNPCL will stop importing petroleum products. He stated that increased availability of these products should lead to lower prices.
He said, “So, at the beginning, it may seem to be increasing but I believe strongly that with the production from Dangote (Refinery) and then the other refineries when they become functional and the fact that it is now open to all to bring in products into the country, I can assure you that we may not even see higher pump prices.
“So, please let’s not dwell on the increase in pump price. We will assess it and if there is a need for us to intervene we will intervene.”
Why Fixing Petrol Prices Is Illegal – Falana Sends Message To NNPCL
Human rights lawyer, Femi Falana, has stated that it is illegal for the Nigerian National Petroleum Company Limited (NNPCL) to set petrol prices.
In a statement released on Thursday, Falana argued that the company’s actions violate the provisions of the Petroleum Industry Act (PIA).
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Falana said though the NNPCL claimed the market has been deregulated and market forces now determine petrol prices, “the NNPCL fixed the price of fuel refined by the Dangote Refinery and Petrochemical Company Limited last month. The so-called market forces were not allowed to fix the price”.
“Yesterday (Wednesday), the Nigeria National Petroleum Company Limited announced new pump prices of fuel refined by the Dangote Refinery and Petrochemical Company. Once again, the so-called market forces were not allowed to fix the new prices of fuel.
“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.
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