Senior Advocate of Nigeria and Human Rights Activist, Femi Falana has said it is illegal fo NNPCL to fix petrol price for Dangote Refinery.
Falana condemned the Nigerian National Petroleum Corporation Limited (NNPCL) for its role in determining the price of Premium Motor Spirit (PMS), commonly known as petrol, following the deregulation of the sector.
According to Falana, the actions of state oil companies are illegal and violate the provisions of the Petroleum Industry Act (PIA).
In a statement released on Tuesday, Falana referenced Section 205 of the PIA, noting that the law mandates that petroleum prices be determined by free market forces, not by NNPCL.
Dangote Refinery, NNPC Ltd.: Who Wins the Petrol War?
He argued that the company’s involvement in price-setting contradicts the deregulation process that the law stipulates.
He 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.
According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”
Monumental Fraud
Earlier in September, Arise News reported that the Senior Advocate of Nigeria, Femi Falana, on Sunday expressed concerns over the ‘monumental fraud’ bedevilling fuel importation in Nigeria.
He said: “How many people have bought a car in the last one and a half years, even second-hand cars (in Nigeria)? The point I am making is that the number of vehicles on the road has been reduced. Yet, we were told that during the days of boom, the NNPC was subsidising 68 million litres of fuel per day.
“Now that there are problems, scarcity, and poverty everywhere, no new vehicles on the road, we are still paying for 68 million litres of fuel. Whereas before this regime came on board, the Comptroller General of Customs challenged the NNPC during a Senate public hearing to pay for the amount of fuel that is said to be smuggled out of the country.”