‘It is illegal’ – Femi Falana bombs NNPCL for fixing price of Dangote petrol

Human rights lawyer, Femi Falana, SAN, has declared it illegal for the Nigerian National Petroleum Company Limited (NNPCL) to set the price of Premium Motor Spirit (PMS), commonly known as petrol, produced by the Dangote Refinery after deregulation.

In a statement issued on Tuesday, Falana stated that the NNPCL’s actions violate Section 205 of the Petroleum Industry Act (PIA), IDOMA VOICE reports. 

“On September 5, 2024, the Nigerian National Petroleum Company Limited (NNPCL) claimed 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 stipulated in the Petroleum Industry Act (PIA).

“The NNPCL was explaining the pump price of PMS imported into the country at the time. Specifically, the Executive Vice President of Downstream, NNPC Ltd, Mr. Adedapo Segun, cited Section 205 of the PIA, which establishes that petroleum prices are to be determined by free market forces.

“However, contrary to this statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. This action directly contravenes Section 205 of the PIA, which clearly stipulates that the prices of petroleum products shall be determined by market forces.

“Moreover, since the petrol sold by Dangote is not imported but produced locally at the Lekki Economic Free Trade Zone, the NNPCL cannot justify the sale of petrol at N950 per litre without including freight costs, lightering costs, jetty depot fees, storage fees, foreign exchange costs, NPA charges, NIMASA charges, Customs duties, and other associated costs,” Falana argued.

Falana’s statement follows the commencement of PMS lifting by the NNPCL from the Dangote Refinery.