Petrol

SERAP Urges President Tinubu to Reverse Latest Petrol Price Hike Pending Court Decision

Published

2 days ago

October 14, 2024

Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Nigerian National Petroleum Company Limited to immediately reverse the latest hike in petrol prices within a month, pending the hearing and determination of the suit before the Federal High Court, Abuja, challenging the legality of the powers of the NNPCL to increase petrol prices.

SERAP in a statement by Deputy Director, Kolawole Oluwadare, on Sunday, said it had last month filed a lawsuit against the President and NNPCL “over the failure to reverse the unlawful increase in the pump price of petrol, and to probe the allegations of corruption and mismanagement in the NNPCL.”

The group stated that the latest increase in petrol prices makes a mockery of the case pending before the Federal High Court, and “creates a risk that the course of justice will be seriously impeded or prejudiced in this case.”

It added that, “One of the fundamental principles of the rule of law is that it applies to everyone, including presidents and CEOs of public institutions.

“It is in the public interest to keep the streams of justice clear and pure, and to maintain the authority and integrity of the court in the case.”

SERAP stressed that allowing the Federal High Court to hear and determine the case would be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], “your oath of office and oft-repeated promises to uphold the rule of law.”

The letter added, “SERAP notes that since assumption of office in May 2023 you have repeatedly promised, including in your inaugural speech, that ‘Nigeria will be impartially governed according to the Constitution and the rule of law.’

“Increasing petrol prices while the Federal High Court case is pending would prejudice and undermine the ability of the court to do justice in the case, damage public confidence in the court, prejudice the outcome of the case, as well as impede the course of justice.

“We would be grateful if the recommended measures are immediately taken following the receipt and/or publication of this letter, failing which SERAP shall consider contempt proceedings and/or other appropriate legal actions to compel your government and NNPCL to comply with our request in the public interest.”

It also warned that if the latest fuel price hike is not immediately reversed, it would seriously undermine the integrity of the Nigerian Constitution and have serious consequences for the most vulnerable and disadvantaged citizens and public interest.

The statement pointed out that protecting the right to a judicial recourse and due administration of justice is of utmost importance, being the cornerstone of an ordered society.

It said the only way in which SERAP can have a fair and effective access to justice in this matter is to allow the court to decide, one way or the other, on the merits of the case before it.

According to SERAP, reversing the latest increase in petrol prices would allow the court to render a decision on the central issues in the case, and protect the applicant’s rights and interests.

“The latest increase in petrol prices while the Federal High Court case is pending constitutes an interference with the right of SERAP to fairly and effectively pursue a judicial challenge to the decision by your government and NNPCL regarding the first increase in petrol prices,” it stated.

SERAP noted that the Nigerian National Petroleum Company Limited had recently increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets, saying that the retail price of petrol was increased from N897 to N1,030 per litre.

“This is the second increase in one month, and followed the increase in September from N600 to N855 per litre, and in some instances above N900 per litre.

“The two increases followed a scarcity caused by the reported refusal by suppliers to import petroleum products for the NNPCL over a $6 billion debt.

“According to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit over USD$2 billion and N164 billion of oil revenues into the Federation Account. The Auditor-General fears that the money may have been diverted into private pockets.

“The NNPCL reportedly failed and/or refused to remit N151,121,999,966. The NNPCL, without any justification, deducted the money from the oil royalties assessed for 2020 by the Department of Petroleum Resources, now Nigerian Upstream Petroleum Regulatory Commission (NUPRC).”

SERAP further stated that the NNPCL had failed to account for missing public funds, pointing out that the Auditor-General wants the money recovered and remitted into the Federation Account.

It stated, “The NNPCL also failed to remit USD$19,774,488.15 collected as government revenue to the Federation Account. The Auditor-General wants the NNPCL to account for the money, recover and remit it into the Federation Account, and to hand over those suspected to be involved to the ICPC and the EFCC.

“The Nigerian Petroleum Development Company (NPDC) Ltd also reportedly failed to account for USD$2,021,411,877.47 and N13,313,565,786.49 of royalties collected from crude oil and gas sales and gas flare.

“The Auditor-General wants the public funds fully recovered and remitted into the Federation Account and for those suspected to be responsible for the missing public funds to be handed over to the ICPC and the EFCC.

“SERAP last month filed a lawsuit asking your government and NNPCL challenging the lawfulness of the increase in the pump price of petrol, and the failure to probe the allegations of corruption and mismanagement in the NNPCL.”

The organisation stressed that increasing petrol prices would compromise the interest of the Applicant in the Federal High Court case filed against the Federal Government and the NNPCL, as the second increase in one month directly touches on the central issues and the legality of the first increase, which the court is set to determine and rule upon.

“The core of the principle of judicial independence is the complete liberty of the judge to hear and decide the cases before them based on facts and in accordance with the law, without any improper interference, direct or indirect,” SERAP noted.

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NNPCL’s Release of N15 Billion Worth of Products Vindicates CNPP’s Allegation of Economic Sabotage

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NLC Slams NNPC Price Hike, Warns of Increased Poverty and Job Losses

Ugwoke Ogbodo

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Petrol

NNPCL’s Release of N15 Billion Worth of Products Vindicates CNPP’s Allegation of Economic Sabotage

Published

19 hours ago

October 15, 2024

Samed Olukoya

The Conference Of Nigeria Political Parties (CNPP) has reacted to the recent release of N15 billion worth of products to independent oil marketers by the Nigerian National Petroleum Company Limited (NNPCL).

In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, on Tuesday, the CNPP noted that it sees this move, facilitated by the Director General of the Department of State Services (DSS), Adeola Ajayi, as “a validation of CNPP’s allegations of economic sabotage against NNPCL.”

Economic Sabotage Confirmed

The statement added that “the CNPP has long argued that NNPCL’s practices have been harmful to the Nigerian economy. The recent authorization by NNPCL, allowing oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) to lift Premium Motor Spirit (PMS) at a reduced price, substantiates the CNPP’s claims of economic sabotage against the federal government-owned oil company.”

Commitment to Regulatory Compliance

As the umbrella body of all registered political parties and associations in Nigeria, the CNPP expressed concern over NNPCL’s ongoing violations of the Petroleum Industry Act (PIA). The CNPP emphasized the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority to issue import and off-taker licenses to oil dealers, enabling them to import fuel directly or purchase from local refineries like the Dangote Refinery. “This move is expected to eliminate NNPCL’s undue regulatory and competitive roles.”

Call for Deregulation or Transparent Subsidy Regime

The CNPP has called on the Federal Government “to either fully deregulate the oil sector, allowing marketers to freely buy and sell petroleum products, or to implement a transparent petrol subsidy regime free from corrupt practices to maintain control over PMS pump prices.

DSS Intervention and IPMAN’s Role

“The DSS’s intervention came after IPMAN threatened to halt operations nationwide due to the high costs of loading petroleum products from NNPCL facilities. IPMAN revealed that the cost of petrol from the Dangote Petroleum Refinery to NNPCL was approximately N898 per litre, while NNPCL was selling it at significantly higher prices in various locations.

“This discrepancy is seen as a deliberate attempt by NNPCL to undermine President Bola Ahmed Tinubu’s Renewed Hope Agenda by exacerbating economic hardship and turning citizens against the government.”

Demand for Accountability

The CNPP questioned why it took threats from IPMAN, which controls over 70 percent of filling stations nationwide, and DSS intervention before NNPCL complied with the law and stopped fixing petrol pump prices. The CNPP accused NNPCL’s leadership of attempting to maintain control over the oil industry post-commercialization due to endemic corruption.

CNPP’s Continued Vigilance

“The CNPP has pledged to continue monitoring the activities of NNPCL, given the company’s significant impact on the economy and the livelihood of ordinary citizens. The CNPP will continue advocate for transparency and accountability in the oil and gas sector as it has done over the years.

“Recall that in December 2022, the DSS had previously taken proactive measures to prevent potential unrest during the Yuletide season by issuing a 48-hour ultimatum to NNPCL, IPMAN, and other stakeholders to resolve the then ongoing fuel crisis, which has remained an issue to date as NNPCL has continued operate in very secretive manner.”

Petrol

NLC Slams NNPC Price Hike, Warns of Increased Poverty and Job Losses

Published

6 days ago

October 10, 2024

Bassey Marshall

The Nigeria Labour Congress (NLC) has reacted to the recent increase in the price of Premium Motor Spirit (PMS) popularly known as petrol by the Nigerian National Petroleum Company (NNPC).

The union, via a statement signed by its president, Joe Ajaero, on Wednesday, revealed that the increase will further deepen poverty in the country, reduce production capacities, and render many people jobless.

The NLC president asked why NNPC, a private company, is fixing the price of petrol, a move he described as ‘a hegemonic monopoly’.

Ajaero called for the intervention of the Federal Government, adding that the government should present a roadmap for inclusive economic growth and national development.

Furthermore, the NLC called for the immediate reversal of the price increase.

He said “Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly.

“We challenge the government to go to the drawing board and present us with a blueprint for inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.

“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities. It will further deepen poverty as production capacities dip and more jobs are lost with multidimensional negative effects.

“In light of this, we urge the government to immediately reverse this rate hike as previous increases did not produce any good results. People only got poorer. But more fundamentally, the government should be bold enough to tell Nigerians in advance the destination it wants to take the country.”

Investors King reported that the NNPC officially announced an increase in the ex-depot price of fuel.

This latest development was detailed in a new price list by the NNPC on Wednesday, October 9.

While the ex-depot price in Lagos stands at ₦1,010 per litre, marketers in Port Harcourt will buy at ₦1,045 and in Calabar is now set at ₦1,050 per litre.