Human rights lawyer Femi Falana, SAN, stated that it is illegal for the Nigerian National Petroleum Company Limited (NNPCL) to set the price of Premium Motor Spirit (commonly known as petrol) for the Dangote Refinery after deregulation.
In a statement made on Tuesday, Falana added that this action by the NNPCL violates Section 205 of the Petroleum Industry Act (PIA).
“On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) stated that foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) governed by unrestrained market forces, as provided for in the Petroleum Industry Act, PIA.
Human rights lawyer, Femi Falana, SAN, says it is illegal for the Nigerian National Petroleum Company Limited, NNPCL, to determine the price of Premium Motor Spirit, also known as petrol, for the Dangote Refinery after deregulation.
Falana, who said this in a statement on Tuesday, added that the action of the NNPCL contravenes Section 205 of the Petroleum Industry Act, PIA.
“On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) stated that foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) governed by unrestrained market forces, as provided for in the Petroleum Industry Act, PIA.
“The NNPCL was explaining the pump price of PMS imported into the country at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by free market forces.
“But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. The action of the NNPCL is a violent contravention of section 205 of the PIA, which stipulates that the prices of petroleum products shall be determined by market forces.
“Furthermore, since the petrol sold by Dangote is not imported into the country but produced at the Lekki Economic Free Trade Zone, the NNPCL cannot justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties etc,” he said.
Falana’s reaction came after the Nigerian National Petroleum Company Limited (NNPCL) began lifting Premium Motor Spirit (PMS) from the Dangote Refinery.
DAILY POST recalls that once the lifting started, NNPCL announced that the product would be sold at N950 per liter in Lagos State and surrounding areas, and over N1,000 per liter in states like Borno.
In response, the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Monday criticized the NNPCL, arguing that it was wrong for petrol sourced from the Dangote Refinery to be more expensive than imported fuel.
