Home NEWS It’s illegal fo NNPCL to fix petrol price for Dangote Refinery –...

It’s illegal fo NNPCL to fix petrol price for Dangote Refinery – Falana

‘In fact, by selling the petrol produced by Dangote Refinery at a higher price, the NNPCL has confirmed its resolve to continue to sabotage the national economy through the reckless importation of cheaper petrol from foreign countries at a cost that the nation cannot afford."

It's illegal fo nnpcl to fix petrol price for dangote refinery - falana
Senior advocate of nigeria and human rights activist, femi falana

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.”

‘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 can not 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.

‘In fact, by selling the petrol produced by Dangote Refinery at a higher price, the NNPCL has confirmed its resolve to continue to sabotage the national economy through the reckless importation of cheaper petrol from foreign countries at a cost that the nation cannot afford.

“The NNPCL has justified the hike by saying that petrol is sold in dollars by the Dangote Refinery. Why should the NNPCL buy petrol in dollars since the Federal Executive Council (FEC) has directed that crude oil be sold to Dangote Refinery in Naira? Are the management staff of NNPCL and Dangote Refinery not aware that it is a criminal offence under section 20 of the Central Bank Act to refuse to accept the naira as a means of payment for any transaction in the country?

 

“Furthermore, the exclusive purchase of petrol from Dangote Refinery by the NNPCL is completely at variance with the letter and spirit of section 205 of the PIA. Therefore, other marketers should be at liberty to purchase petrol directly from Dangote Refinery and distribute to outlets in all the states of the Federation. Henceforth, the Federal Competition and Consumer Protection Commission should stop the NNPCL from exercising monopolistic control of the petrol produced by Dangote Refinery.”

 

Falana’s outburst comes following the commencement of PMS lifting by the NNPCL from the Dangote Refinery on Sunday.

 

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.

Falana, who made the observation when he was featured as a guest on Sunday’s Channels Television’s ‘Politics Today’,  stated that it was irreconcilable that cars were getting lesser on Nigerian roads while the subsidy payment was increasing.

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.”

He further alleged that the NNPC was not telling Nigerians everything it claimed to know about the smuggling of crude in the country, maintaining that smugglers need 2,000 petrol tankers to steal the volume of fuel the company claims is being smuggled.

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