SERAP Urges Tinubu to Reverse Latest Petrol Price Hike Pending Court Ruling

SERAP calls on President Tinubu to reverse the recent petrol price increase while awaiting the court’s verdict on the matter, citing concerns over the impact on Nigerians.

The Socio-Economic Rights and Accountability Project (SERAP) is calling for the recent petrol price hike to be reversed immediately.

The organization called on President Bola Tinubu to instruct the Nigerian National Petroleum Company Limited (NNPCL) to promptly reverse the second petrol price hike within a month. This request is pending the hearing and decision of a lawsuit before the Federal High Court in Abuja, which challenges NNPCL’s authority to raise petrol prices legally.

With the recent price hike, NNPCL outlets in Lagos are now selling a litre of petrol for ₦998, up from the previous rate of ₦855. In Abuja, prices have risen to ₦1,030 per litre from an initial cost of ₦897.

At other gas stations, the product is priced as high as ₦1,050 in certain areas of Lagos State.

Last month, SERAP filed a lawsuit against the president and NNPCL for not reversing the seemingly unlawful hike in petrol pump prices and failing to investigate accusations of corruption and mismanagement within NNPCL.

In an open letter dated October 12, 2024, and signed by Deputy Director Kolawole Oluwadare, SERAP stated: “The recent hike in petrol prices undermines the ongoing case at the Federal High Court and poses a significant risk of obstructing or compromising justice in this matter.”

In a letter on Sunday, SERAP stated, “A core principle of the rule of law is its universal applicability, encompassing all individuals such as presidents and leaders of public institutions.”

SERAP stated that maintaining the authority and integrity of the court is essential for keeping justice clear and pure, which serves the public interest.

The organization further stated, “Permitting the Federal High Court to consider and resolve the case aligns fully with both the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office, and your frequently reiterated commitments to uphold the rule of law.”

The letter partially stated: “SERAP observes that since you took office in May 2023, you have consistently pledged, including during your inaugural address, to govern Nigeria impartially according to the Constitution and the rule of law.”

Raising petrol prices while the Federal High Court case is still pending would compromise and hinder the court’s capability to deliver justice, erode public confidence in its decisions, influence the outcome of the case unfavorably, and disrupt the pursuit of justice.

We kindly request that you implement the recommended measures immediately upon receiving or publishing this letter. If not, SERAP may pursue contempt proceedings and/or other suitable legal actions to ensure your government and NNPCL fulfill our public interest demand.

If not promptly reversed, the recent rise in petrol prices could significantly compromise the integrity of the Nigerian Constitution and have severe repercussions for vulnerable and disadvantaged Nigerians as well as for public interest.

Safeguarding the right to legal recourse and fair administration of justice is crucial, as it forms the foundation of a well-ordered society.

The only way for SERAP to have fair and effective access to justice in this matter is by allowing the court to make a decision on the merits of the case.

If the recent rise in petrol prices were reversed, it would enable the court to make a decision on the core issues of the case and safeguard the applicant’s rights and interests.

The recent hike in petrol prices, while the case is still pending in Federal High Court, interferes with SERAP’s ability to pursue a fair and effective legal challenge against your government and NNPCL regarding the initial price increase.

Based on our information, the Nigerian National Petroleum Company (NNPC) Limited has recently raised the price of premium motor spirit (PMS), commonly referred to as petrol, at its retail locations.

The price of petrol at retail outlets rose from N897 to N1,030 per litre. This marks the second hike within a month and comes after September’s increase from N600 to N855 per litre, with some cases exceeding N900 per litre.

The two hikes came after a shortage, reportedly due to suppliers refusing to import petroleum products for the NNPCL because of a $6 billion debt.

The Auditor General of the Federation’s (AGF) recently released 2020 audited report reveals that the Nigerian National Petroleum Corporation (NNPC) did not remit over $2 billion and N164 billion in oil revenues to the Federation Account. The Auditor-General expresses concern that these funds may have been siphoned into private accounts.

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The NNPCL allegedly did not remit a sum of N151,121,999,966. The organization deducted this amount from the 2020 oil royalties assessed by the Department of Petroleum Resources (DPR), now known as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), without providing any justification.

The NNPCL has not provided an explanation for the missing public funds. The Auditor-General is seeking to have the money recovered and deposited into the Federation Account.

The NNPCL did not remit $19,774,488.15 of government revenue to the Federation Account as required. The Auditor-General has requested that the NNPCL account for these funds, recover and deposit them into the Federation Account, and refer any suspected individuals involved to both the ICPC and EFCC.

The Nigerian Petroleum Development Company (NPDC) Ltd allegedly did not account for USD 2,021,411,877.47 and NGN 13,313,565,786.49 in royalties collected from crude oil sales as well as gas production and flaring activities.

The Auditor-General insists that all public funds must be completely recovered and deposited into the Federation Account, while those suspected of being responsible for the missing funds should be turned over to the ICPC and EFCC.

Last month, SERAP initiated a lawsuit against your government and NNPCL, questioning the legality of raising petrol pump prices and addressing the lack of investigation into allegations of corruption and mismanagement within NNPCL.

The Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN, is included as a respondent in the suit filed at the Federal High Court in Abuja under case number FHC/ABJ/CS/1361/2024.

Rising petrol prices would undermine the Applicant’s position in the Federal High Court case against your government and NNPCL. The second price increase within a month directly impacts the core issues, including the legality of the initial hike, which are set for judicial review and decision by the court.

The essence of judicial independence lies in a judge’s absolute freedom to evaluate and rule on cases based solely on the facts presented and legal standards, free from any undue influence or interference, whether direct or indirect.