Femi Falana, SAN, a lawyer who specializes in human rights, asserts that it is against the law for the Nigerian National Petroleum Company Limited, NNPCL, to establish the price of Premium Motor Spirit, which is simply referred to as petrol, for the Dangote Refinery following the deregulation of the industry.
The move taken by the NNPCL is in violation of Section 205 of the Petroleum Industry Act (PIA), according to Falana, who made this remark in a statement that was released on Tuesday.
As stated in the Petroleum Industry Act (PIA), the Nigerian National Petroleum Corporation Limited (NNPCL) made a statement on September 5, 2024, stating that foreign exchange (forex) illiquidity had been a significant factor that had been influencing the fluctuation in prices of Premium Motor Spirit (PMS). These fluctuations were governed by unrestrained market forces.At the time in question, the NNPCL was providing an explanation on the pump price of PMS that was imported into the country. To be more specific, Mr. Adedapo Segun, Executive Vice President of Downstream NNPC Ltd., said that Section 205 of the Petroleum Industry Act (PIA), which founded NNPC Ltd., stipulated that the pricing of petroleum were set by the forces of the free market.
“But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. According to the provisions of section 205 of the Petroleum Industry Act (PIA), which states that the prices of petroleum products are to be set by market forces, the action taken by the NNPCL constitutes a flagrant violation thereof.
“In addition, because the gasoline that Dangote sells is not imported into the country but rather produced at the Lekki Economic Free Trade Zone, the Nigerian National Petroleum Corporation (NNPCL) is unable to justify the sale of gasoline at a price of N950 per liter without taking into account the costs of freight, lightering, jetty depot fees, storage fees, foreign exchange costs, NPA charges, NIMASA charges, Customs duties, and other fees,” he stated.
It was shortly after the beginning of PMS lifting by the NNPCL from the Dangote Refinery that Falana let loose with her rant.
Recalling that the National Petroleum Corporation of Nigeria (NPCL) made the announcement that the product will be sold for N950 per liter in Lagos State and the surrounding areas, and for more over N1,000 per litre in states such as Borno, after the lifting process had begun.
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As a response, the Independent Petroleum Marketers Association of Nigeria (IPMAN) voiced its disapproval of NNPCL on Monday, stating that it was not appropriate for the price of gasoline that was extracted from the Dangote Refinery to be greater than the price of gasoline that was imported.
