You cannot fix petrol price for Dangote Refinery — Falana slams Nigerian Govt
Human rights lawyer, Femi Falana, SAN, has criticised the Nigerian National Petroleum Company Limited (NNPCL) for setting the price of Premium Motor Spirit (petrol) for the Dangote Refinery following the deregulation of the petroleum sector.
In a statement issued on Tuesday, Falana argued that NNPCL’s action violates Section 205 of the Petroleum Industry Act (PIA), which governs the regulation of petroleum pricing in Nigeria.
Falana said: “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.”
Femi Falana’s criticism came in response to the Nigerian National Petroleum Company Limited (NNPCL) beginning the distribution of Premium Motor Spirit (PMS) from the Dangote Refinery.
Upon the start of the product lifting, NNPCL announced that petrol would be sold at N950 per litre in Lagos and surrounding areas, and over N1,000 per litre in states like Borno.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also voiced concerns on Monday, condemning NNPCL’s pricing.
IPMAN argued that it was unjust for petrol from the Dangote Refinery to be priced higher than imported fuel.
