Kerosene: Falana-led coalition tackles FG over deregulation, threatens lawsuit

The Alliance for Surviving COVID-19 and Beyond (ASCAB), a coalition of 70 labour and civil society organisations (CSOs), has called on the President Muhammadu Buhari-led administration to review the deregulation of kerosene.

ASCAB’s position was contained in a statement by Femi Falana, its chairperson, on Sunday. 

Timipre Sylva, minister of state for petroleum resources, had recently said the federal government has no powers to intervene in the rising price of kerosene for households. 

“Kerosene, which is the fuel for the average household, is already a deregulated product. It is not necessarily within the purview of the government but a now a commercial decision. Companies will import and sell kerosene at a commercial rate. It is a deregulated product,” the minister had said. 

Reacting to Sylva’s position, ASCAB said the deregulation of the product was “illegally pushed out by the Buhari administration”, adding that Nigerians are suffering due to the government’s decision. 

“It is common knowledge that the federal government, through the NNPC is the sole importer of fuel into the country, claiming to be subsidising the product,” it said. 

“So, how can the Federal Government turn round to allow private companies or the so called market forces to fix the price of the same product?” 

ASCAB also cited cases filed against the federal government on who is legally empowered to fix prices of fuel products such as kerosene.

“However, contrary to the Chief Sylva’s claim, the Federal Government is legally obligated by the combined effect of section 4 of the Price Control Act and section 316 of the Petroleum Industry Act to determine and fix the prices of petroleum products including petrol motor spirit, kerosene and cooking gas,” the statement reads.

“In Aberuagba v Attorney-General of Ogun State the Supreme Court held: Furthermore, item 61(e) empowers the Federation to control the prices of goods and commodities.

“Under the Price Control Act 1977 and the Price Control Commodities Order 22 of 1979, the Federal Government has controlled the prices of petrol, diesel oil and petroleum products. I have earlier shown that the Act and the Order are existing laws.

“In Bamidele Aturu v Minister of Petroleum Resources and the Attorney General of The Federation (Suit No FHC/ABJ/CS/591/2009), Justice M. Bello declared the policy of deregulation of the downstream sector of the petroleum industry to be unconstitutional, illegal, null and void. 

“Consequently, the Court ordered the defendants, their agents, privies, collaborators and whosoever and howsoever to desist from failing to fix the prices of petroleum products as mandatorily required by the Petroleum Act and the Price Control Act. 

“The Court further ordered the government to fix and publish regularly the prices of petroleum products.

“In view of the clear statutory provisions and decided cases on the illegality of the deregulation of any aspect of the petroleum industry, the Federal Government should stop subjecting the Nigerian people to excruciating economic crisis by allowing the so called market forces to determine and fix the prices of petroleum products in the country.”

ASCAB asked President Muhammadu Buhari, minister of petroleum resources, to call Sylva to order for treating the subsisting judgments of the federal high court and the supreme court “with contempt”.  

“Otherwise, we shall not hesitate to commence contempt proceedings against the public officers in charge of the petroleum industry,” it added.