SERAP Urges Tinubu To Reverse Second Petrol Price Hike By NNPC Pending Court Verdict

The Socio-Economic Rights and Accountability Project (SERAP) has expressed deep concerns over the recent increase in petrol prices by the Nigerian National Petroleum Company (NNPC) Limited. In an open letter dated October 12, 2024, SERAP urged President Bola Tinubu to direct NNPC to reverse the hike, pending the determination of a lawsuit currently before the Federal High Court in Abuja.

SERAP’s letter emphasised the potential harm of proceeding with price increases while legal challenges are still unresolved. “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,” the organisation stated.

NNPC’s Second Petrol Price Hike in One Month

On Wednesday, NNPC announced another petrol price hike, the second in one month, raising prices from N897 to N1,030 per litre in Abuja, and similar increases across the country. In Lagos, prices rose from N855 to N998, while the North-East saw prices climb to N1,070. Other regions were not spared, with petrol now costing N1,045 in the South-East and N1,075 in the South-South.

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This price increase follows a previous one in early September when the price of petrol jumped from N600 to N855 per litre. Both hikes are believed to be linked to NNPC’s difficulty in securing petroleum products from suppliers, reportedly due to a $6 billion debt.

SERAP: Price Hike Undermines Rule of Law

In its letter, SERAP criticized NNPC’s decision to raise prices while a lawsuit challenging its authority to do so remains unresolved. “The latest increase in petrol prices makes a mockery of the case pending before the Federal High Court and creates a risk that justice will be impeded,” SERAP warned.

The lawsuit, filed in September, questions the legality of NNPC’s power to unilaterally increase petrol prices. SERAP’s deputy director, Kolawole Oluwadare, underscored the importance of upholding the rule of law in this matter. “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 this case,” he wrote.

Allegations of Mismanagement and Corruption

SERAP’s concerns extend beyond the recent price hikes. The organization is also calling for President Tinubu to investigate allegations of corruption and mismanagement within NNPC. These concerns are based on a 2020 audit report by the Auditor General of the Federation, which revealed that NNPC failed to remit over $2 billion and N164 billion of oil revenues to the Federation Account. The Auditor-General fears that the missing funds may have been diverted into private pockets, further eroding public trust.

“The NNPCL has failed to account for the missing public funds,” Oluwadare said, adding that “if not immediately reversed, the latest increase in petrol prices would seriously undermine the integrity of the Nigerian Constitution and have serious consequences for the most vulnerable Nigerians.”

SERAP’s Call for Action

In its letter, SERAP implored President Tinubu to take immediate steps to reverse the petrol price hike and ensure transparency in NNPC’s operations. “We would be grateful if the recommended measures are taken promptly, failing which SERAP shall consider contempt proceedings and/or other legal actions to compel your government and NNPCL to comply,” SERAP warned.

The letter also recalled President Tinubu’s promise upon assuming office in May 2023, when he assured Nigerians that the country would be governed impartially and according to the rule of law. SERAP believes that maintaining this commitment is crucial, especially in light of the current petrol price controversy.

The court is yet to determine the legality of NNPC’s price increases. However, SERAP’s call for a reversal highlights the urgency of ensuring that decisions affecting millions of Nigerians are made transparently and in accordance with the law.